October 24, 2013

Re: Capital Purchase Program – Deadline for Completing Placement Agency 

Agreements and Obtaining Regulatory Approvals to Participate in CPP Auctions

The purpose of this letter is to request your assistance in completing, by not later than December 

20, 2013, the preparations for a “single-name auction” of Treasury’s investment in your 

institution.

As you know, the United States Department of the Treasury (Treasury) has been winding down 

its Capital Purchase Program (CPP) investments, in part through a series of auctions of its 

investments which began in March 2012. In June 2012, we sent a letter to a number of banks

informing them that Treasury was considering including its investments in their institutions as 

part of a series of pooled auctions of CPP investments. At that time, we offered each such

institution the opportunity to opt-out of the pooled auction if Treasury received a qualifying bid

from the institution or a designated bidder to repurchase all the institution’s remaining 

outstanding CPP securities. Any such bid had to be above a minimum price set by Treasury in 

order for Treasury to conduct an individual, competitive auction. Treasury’s investments in 

institutions that met these requirements were then auctioned on a single-name basis as part of a 

series of “opt-out” auctions, the first of which occurred in October 2012. 

Subsequently, by letter dated January 18, 2013, Treasury offered another opportunity for 

institutions to opt-out of future pooled auctions to the extent they submitted a qualifying bid by 

April 30, 2013. Finally, by letter dated June 19, 2013, Treasury also offered the opportunity for 

institutions to have the CPP investment auctioned individually, even without a qualifying bid, so 

long as institutions were willing to work with Treasury to prepare for such single name auctions.

Treasury has successfully auctioned its investments in approximately 160 institutions ranging in 

size and geographic scope since March 2012. Consistently, these auctions were competitive, 

robust, and saw strong investor demand. Investor interest has generally increased as Treasury

completed these auctions, including with respect to the sale of relatively small positions.

It has been about eighteen months since Treasury first asked institutions to work with us to 

facilitate individual auctions of CPP investments. In order for Treasury to complete this stage 

and continue winding down its CPP investments, Treasury and the institutions who are still 

working on individual auctions must complete all the requirements, including all documentation 

and any regulatory approvals. Thus, we need your institution to complete all requirements by 

December 20, 2013, if your institution wishes to participate in the current auction formats (single 

name auctions with or without “opt-out” qualifying bids). Furthermore, if your institution has 

not yet started the work of completing the necessary requirements, but would like to be 

considered for inclusion in Treasury’s auction process, it is important that you contact us 

immediately so that your institution can begin this process now in order to meet the December 
20, 2013 deadline. We anticipate conducting auctions under these formats into early next year 

until we finish auctioning all investments in institutions that have completed the requirements. 

Treasury will proceed with pooled sales or other types of competitive dispositions for its 

investments in institutions that do not complete the requirements by the December 20 deadline. 

We hope that your institution will be able to work with us to complete all the requirements by 

December 20 in preparation for auction. If you have any questions, please feel free to contact us 

at cpp@treasury.gov.

Best regards,

Michael Harris

Director of the Capital Purchase Program