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http://www.nwitimes.com/business/local/art...5b8eff422a.html

Horizon Bank pledges to up small biz lending over next 2 years

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By Bowdeya Tweh bowdeya.tweh@nwi.com, (219) 933-3316 | Posted: Thursday, September 1, 2011 11:00 am | No Comments Posted

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Horizon Bancorp will exit the much-maligned Troubled Asset Relief Program with funds received through a new federal program encouraging community banks to boost small business lending.

However, the Michigan City-based parent of Horizon Bank has pledged to increase the amount of small business loans it makes in the region over the next two years.

The bank received $12.5 million and redeemed preferred shares the U.S. Treasury Department bought in December 2008, which was through the Capital Purchase Program under the Troubled Asset Relief Program, or TARP.

The Treasury Department said Wednesday the funding was provided through the $30 billion Small Business Lending Fund established under the Small Business Jobs Act of 2010. The program's goal is to raise the level of lending to small businesses by providing capital to well-performing community banks with assets less than $10 billion, said Mark Secor, Horizon's chief financial officer. Loans up to $10 million can be made to companies that generate up to $50 million in annual revenue.

"Breaking down barriers to credit will provide critical support to Main Street entrepreneurs looking to invest in their local communities, grow their businesses, and put more Americans back to work," Deputy Treasury Secretary Neal Wolin said in a news release Wednesday.

Rules of the new program required the bank to send a two-year business plan to the Treasury on how it would make small business loans totaling or exceeding the government funds received, Secor said.

"Our plan is to continue to get out of these programs as (positive) earnings continue so we can repurchase preferred shares," Secor said.

He later said: "Would we have done this on our own? Yes. But to get (away) from TARP was beneficial for many reasons."

Banks will receive funds through purchases of preferred stock or an equivalent, according to the Treasury's website. The price a bank pays the Treasury will be reduced as a bank's small business lending increases.

"We believe it's our responsibility to bring tax dollars back to the communities we support so the community can remain competitive," said Dave Rose, Northwest Indiana market president at Horizon Bank

Read more: http://www.nwitimes.com/business/local/art...l#ixzz1Wo9MVdJv

[Southsider2k12]

http://www.nwitimes.com/business/local/art...ec541a1e60.html

Horizon Bank pledges to up small biz lending

Horizon Bancorp will exit the much-maligned Troubled Asset Relief Program with funds received through a new federal program encouraging community banks to boost small business lending. The Michigan City-based parent of Horizon Bank has pledged to increase the amount of small business loans it makes in the region over next 2 years.

Read more: http://www.nwitimes.com/business/local/art...l#ixzz1XkP53Qtd

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http://www.washingtonpost.com/business/eco...mpYN_story.html

Summary Box: US raises $12.2M from sales of warrants in 17 banks that got bailout support

By Associated Press, Updated: Friday, November 18, 1:34 PM

RAISING MONEY: The Treasury Department raised $12.2 million from the sale of warrants of 17 banks that received government support during the financial crisis.

WHO ARE THEY: The largest amount raised in gross proceeds was $2.79 million from the sale of warrants of Eagle Bancorp Inc. of Bethesda, Md., followed by $1.75 million from warrants of Horizon Bancorp of Michigan City, Ind. The 17 banks collectively received approximately $1 billion in support from the Troubled Asset Relief Program in 2008 and 2009. All 17 have repaid the money and the warrants represent their last link to the TARP program.