The deadline for TARP CPP recipients who received capital infusions prior to June 15, 2009 are required to have adopted an Excessive or Luxury Expenditures Policy by Monday, September 14, 2009.  In addition to adopting such a policy, TARP CPP recipients are required to submit the policy to Treasury and their primary federal banking regulator, and post the policy on their website.  (Subsequent TARP CPP recipients are required to adopt and post a policy within 90 days after the completion of their capital infusion.)

We have collected a list of posted Excessive or Luxury Expenditure Policies.  This list is complied for informational purposes only to offer examples, and is not intended to be complete list of posted policies.  In addition, we may not identify when a bank has filed a revised policy.  Inclusion (or exclusion) from the list does not represent a recommendation of any policy.  Clients of Bryan Cave should contact us to further discuss an appropriate Excessive or  Luxury Expenditures Policy.

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This list of sample Excessive or Luxury Expenditures Policies is complied for informational purposes only to offer examples, and is not intended to be complete list of posted policies.  In addition, we may not identify when a bank has filed a revised policy.  Inclusion (or exclusion) from the list does not represent a recommendation of any policy.  Clients of Bryan Cave should contact us to further discuss an appropriate Excessive or Luxury Expenditures Policy.

The following list identifies bank or bank holding company name, state, amount of TARP CPP funds received, and whether they are a public or private company.  We have also attempted to identify policies that appear to be based on the same model, and indicated accordingly.  (List Updated as of May 2011 to remove links to firms that have removed their Excessive or Luxury Expenditures Policy from their website, presumably due to a redemption of their TARP CPP funds.)

• Bank of the Ozarks – Arkansas – $75 Million  – Public
• Riverside Bank – Arkansas – $1 Million – Private (Model A)
• Simsbury Bank – Connecticut – $4 Million – Private Company
• First Community Bank of America – Florida – $11 Million – Public (Model B)
• Two Rivers Financial Group – Iowa – $12 Million – Private
• First Merchants Corporation – Indiana – $116 Million – Public (Model A)
• NBRS Financial Bank – Maryland – $6 Million – Private (Model B)
• EagleBank – Maryland – $38 Million – Public (Model B)
• Bar Harbor Bank & Trust – Maryland – $19 Million – Public (Model B)
• FirstBank – Michigan – $33 Million – Public (Model B)
• The Little Bank – North Carolina – $8 Million – Private
• State Bank of Long Island – New Jersey – $37 Million – Public
• First Federal Community Bank – Ohio – $3 Million – Private
• CFBank – Ohio – $7 Million – Public
• York Traditions Bank – Pennsylvania – $5 Million – Private (Model B)
• First State Bank of Mobeetie – Texas – $1 Million – Private
• Washington Trust Bank – Washington – $110 Million – Private
• Community First Bank – Wisconsin – $6 Million – Private (Model B)

As a reminder, under the Treasury’s Interim Final Regulations, an Excessive or Luxury Expenditures Policy must:

1. address four categories of expenditures: entertainment or events; office and facility renovations; aviation or other transportation services; and other similar items, activities, or events;
2. be reasonably designed to eliminate excessive and luxury expenditures;
3. identify the types or categories of expenditures which are prohibited;
4. identify the types or categories of expenditures for which prior approval is required;
5. provide reasonable approval procedures;
6. require principal executive and financial officers to certify that such approval procedures were followed;
7. require the prompt internal reporting of violations to an appropriate person; and
8. mandate accountability for adherence to the policy.