Capital Purchase Program Participants Use of Funds Survey

DEPARTMENT OF THE TREASURY
WASHINGTON, D.C. 20220

February 11, 2013
Dear CPP Participant:
The Treasury Department would like to thank you for participating in the Capital Purchase
Program (CPP). The program has the objectives of stabilizing and strengthening the financial
system and increasing credit to our economy. Your participation in this program is vital in these
efforts to restore confidence in our financial system and ensure the availability of credit in our
economy. As an essential part of restoring confidence, the Treasury Department is committed to
determining the effectiveness of all of the programs of the Office of Financial Stability (OFS).
One aspect of this evaluation is analyzing the usage of CPP capital for a more effective
understanding of what actions institutions took, or were able to avoid taking, because of CPP
funding.
To this end, the Treasury Department intends to collect and analyze information from a number
of sources to gauge the effectiveness of the CPP, including this annual Use of Capital Survey.
The purpose of this survey is to obtain insight into the lending, financial intermediation, and
capital building activities of all recipients of CPP funds. This survey is designed to capture
representative information of CPP fund usage, without imposing excessive burdens on
institutions. This survey will cover how each financial institution has employed the capital
infusion of CPP funds during 2012. Treasury also conducted this survey for 2010 and 2011 and
you may have participated in those surveys. Treasury will be pairing your answers to this survey
with summary balance sheet and income statement information from your institution’s regulatory
filings. An example of the template and previous years’ survey results can be found at
http://www.treasury.gov/useofcapital/.
Treasury requests you provide, within 30 days of this request, the following information (all
answers should refer to actions taken during calendar year 2012 in which CPP funds were
outstanding):
(1) Qualitative responses describing the ways in which your institution has utilized CPP
capital. Specifically, please describe whether your institution (a) increased lending or
reduced lending less than otherwise would have occurred, (b) increased securities
purchased, (c) reduced borrowings, (d) increased reserves for non-performing assets,
(e) increased charge-offs, (f) purchased another financial institution or purchased
assets from another financial institution, and (g) held CPP capital as a non-leveraged
increase to total capital.
(2) Descriptions of any other actions that your institution was able to avoid because of
the capital infusion of CPP funds.
(3) Descriptions of any actions that your institution was able to undertake that it may
have not taken without the capital infusion of CPP funds.

Within your answers, please take all of the questions into consideration, and reference
quantitative evidence as necessary or appropriate. In addition, we ask that you preserve all
relevant supporting documentation such as budgets, internal email or memoranda, or other
documentation regarding your usage of CPP funds in accordance with your standard operating
procedures. We expect you would be able to respond within the electronic format survey limits
of 1-2 paragraphs for the specific uses of capital and one-half page for the open-ended questions;
however, if your answers exceed the character limit, please feel free to use the space provided in
the last question to complete your descriptions.
Treasury intends to publish answers that are collected on both an aggregate and institution level
and will publish the names of any financial institutions that do not submit a survey response to
Treasury. Treasury will also publish aggregate analytics based on survey responses. This survey
is to be submitted by the appropriate senior executive officer to
[email protected]. This senior executive officer also must certify that such
survey is accurate to the best of his or her knowledge. If you have questions on the survey feel
free to send an email to [email protected] and one of our Analysts will reply.
Thank you again for your assistance in this effort, and we look forward to working with you on
these initiatives.

Regards,

Lorenzo Rasetti
Chief Financial Officer
Office of Financial Stability