CLEVELAND - Mountain Valley Bancshares Inc., the Cleveland-based holding company for Mountain Valley Community Bank, Wednesday announced a TARP (Capital Purchase Program) repayment of $3.4 million to the U.S. Treasury Department.
Mountain Valley, which has bank branches in North Hall, Cleveland, and Jefferson, has now redeemed all 3,000 shares of the Series 2009 preferred stock that was originally issued to the U.S. Treasury under the program. The remaining 465 shares were purchased by investors.
"Repayment of our TARP funds is a significant milestone for Mountain Valley. This action reflects the strength of our balance sheet and with the economic recovery gaining momentum, it was time to redeem the Treasury's investment," stated Marc J. Greene, President & CEO of Mountain Valley Bancshares, Inc., "With the absence of any requirement to raise equity, this is clearly in the best interest of our shareholders."
According to the Treasury Department's Website, the TARP/Capital Purchase Program (CPP) was launched to "stabilize the financial system by providing capital to viable financial institutions of all sizes throughout the nation." The explanation also states "without a viable banking system, lending to businesses and consumers could have frozen and the financial crisis might have spiraled further out of control."
Mountain Valley also reports income of $331,000 for the first half of the year, compared to $232,000 the first half of 2012. Assets from June 2012 to June 2013 remained steady with total assets equaling $148 million and $147 million, respectively.