Wednesday, June 8, 2022

Security Federal, BancPlus are latest ECIP participants

Security Federal in Aiken, S.C., and BancPlus in Ridgeland, Miss., are the latest banking companies to participate in the Treasury Department’s Emergency Capital Investment Program (ECIP). 

The $1.3 billion-asset Security Federal disclosed in a regulatory filing Wednesday that it received about $82.9 million in Tier 1 capital after selling preferred stock to the Treasury Department. 

The company agreed to adopt an excessive or luxury expenditures policy within the next 90 days to comply with the program, among other things.

The $5.7 billion-asset BancPlus disclosed in a separate regulatory filing that it expects to receive a $250 million investment from the agency on June 22. 

Broadway Financial in Los Angeles said it is receiving $150 million in ECIP funds. The Treasury set aside $9 billion to invest in Community Development Financial Institutions (CDFIs) and Minority Depository Institutions (MDIs) through the program.  

The capital will help institutions provide loans, grants and forbearance for small and minority businesses, as well as consumers in low-income and underserved communities.  

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