Two of the Teche Area’s largest banks are healthy enough, according to the U.S. Treasury Department, to receive investment funding under the Capital Purchase Program, designed to further strengthen already solid banks.

Rusty Cloutier, president of Mid South Bank, said the program is a part of the $700 billion bailout plan passed by the U.S. House and Senate in October. He said the CPP component is different than the Troubled Assets Relief Program aimed at rescuing failing banks.

“People in Washington thought some of the bailout money should be given to good institutions to strengthen them,” Cloutier said. “This is not a bailout or a gift. We have to pay the government 5 percent interest, and they will likely make substantial profits off of loaning us this money.”

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Mid South Bank received $20 million in CPP funding.

IberiaBank spokeswoman Beth Ardoin said the $90 million in loans her bank is accepting from the CPP program will make it well capitalized to continue making loans to its customers and in future acquisitions of other failed banks or banks about to fail.

“In today’s environment, banks are failing and healthy banks need to be in a position to acquire those banks which can no longer make loans, employ people or keep their branches open,” Ardoin said. “It’s so important for healthy banks to be in a position to sustain some portion of that failed entity.”

Cloutier said Mid South Bank is planning town hall meetings in every market it serves to determine what customers need and how the bank can help them.

Cloutier said the town hall meeting for New Iberia is tentatively scheduled for 6 p.m. Feb. 16.

“We are doing what we can to help stimulate the economy,” he said.

“We will be reaching out to the communities we serve. We are here to help and these federal funds will allow us to help even more.”

Ardoin said the funding helps IberiaBank better serve its customers, as well.

“We have continued to lend money and are still lending today,” she said. “Mortgage and interest rates are so low it is certainly a favorable borrowing environment for our customers.”

She said the bank always has had strict lending criteria and continue to maintain that criteria.

“Our focus on good credit quality has helped us maintain a healthy position,” she said.

Capital One Bank, JP Morgan Chase, Regions Bank and Whitney Bank also received more than $32.4 billion combined.