I have great respect for both institutions but in this instance the contrast is striking. We’ll start with Hancock Bank via WLOX:
Hancock Bank has told the government thanks but no thanks to the financial bailout plan. Hancock Bank’s parent company, Hancock Holding announced Thursday it will not participate in ‘TARP,’ also known as ‘Troubled Asset Relief Program’ set up to help struggling financial institutions.
Hancock Bank officials say the company is one of the nation’s strongest and safest financial institutions and continues to make sound loans.
Paul Maxwell with Hancock Bank said so far, only 20 banks across the country have declined the financial bailout funding.
“After very thorough evaluation and analysis, Hancock’s board of directors and senior management have concluded that declining government funding safeguards the best interests of our shareholders and the company,” said Hancock Holding Company Chief Executive Officer Carl J. Chaney. “Hancock remains an extremely sound, well-capitalized institution as evidenced by our time-honored corporate values, conservative business model, and proactive risk management practices for ensuring Hancock maintains adequate capital to fund loan growth and consider potential expansion opportunities.”
I had this Clarion Ledger story on TARP and Trustmark saved:
If cleared for $215 million in federal funds, Trustmark Corp. plans to invest in both small and large companies, make consumer loans and expand.
Though the funds would come from the $700 billion federal bailout package, Trustmark’s chief executive said the bank remains healthy and simply wants to take advantage of attractively priced capital.
“Trustmark does not need to do this. It’s one of the stronger capitalized banks and above the median of the banks our size in America,” said Richard Hickson, chairman and chief executive officer.
“We view this as an opportunity to have some reasonably priced capital to grow and do business. And (an opportunity) to have some insurance on hand for Trustmark and our customers if this recession becomes as difficult as some of these people in Washington say it might.”
I’ll add IMHO these are the two best run banks in Mississippi but I really have heartburn about financially strong banks like Trustmark taking bailout money.