The parent company of Silicon Valley Bank said today it received “preliminary approval” from the U.S. Treasury Department to partake in its Troubled Asset Relief Program (“TARP”) and receive up to $235 million under its Capital Purchase Program, according to a press release issued by SVB Financial Group today.
The company plans to submit final documentation to the Treasury in order to close the proposed transaction before Dec. 31.
The news comes about a week after the parent company of San Jose-based Heritage Bank of Commerce said it had decided to take up the Treasury Department’s offer for an infusion of $40 million in cash.
“This program gives healthy institutions like ours access to attractively priced capital that we intend to use to support our continued growth and business development,” said Ken Wilcox, president and CEO of SVB Financial Group, which noted that its capital ratio of 9.94 percent as of Sept. 30 already exceeds that of a “well-capitalized” institution. The new money would currently increase that ratio to about 12.79 percent.