Arvest Bank says no to Treasury's Capital Purchase Program

Arvest Bank has opted not to participate in the U.S. Treasury's Capital Purchase Program, the bank said today.

The government is purchasing up to $250 billion in shares from public and private banks across the country to inject capital and improve lending. So far, $158.56 billion has been allocated to 30 institutions, and some smaller banks - including Springfield's Great Southern Bancorp - have said they will participate in the next round of disbursements.

"Arvest evaluated the provisions of the Capital Purchase Program carefully and made a business decision not to apply for the funds due to the strength of our balance sheet and our capital exceeding federal standards for being well capitalized," Arvest President and Chief Operating Officer Kevin Sabin said in a news release.

Arvest will, however, participate in the Temporary Account Guaranty Program, which provides full FDIC insurance protection regardless of balance for non-interest-bearing transaction accounts and certain demand deposit accounts paying less than 0.5 percent interest, according to the release. The expanded coverage will extend through Dec. 31, 2009. The program does not involve funds from the federal government.

Fayetteville, Ark.-based Arvest has $9.82 billion in assets and 215 branches in Arkansas, Kansas, Oklahoma and Missouri, including two in Springfield.