Mar. 24--Although it was approved for the money, Columbia-based First Citizens said Monday it won't participate in the federal bailout loan program.

Lloyd Hendricks, president of the South Carolina Bankers Association, said Monday he doesn't know of any other banks in the state that have made a similar decision.

First Citizens, a privately owned bank, had applied for a $50 million loan through the Trouble Assets Relief Program and was approved without conditions, chief financial officer Craig Nix said.

The bank was eligible to apply for up to $145 million.

The application was submitted before bank executives got an opportunity to examine the rules and conditions for the loan, Nix said.

"The program and rules governing it continued to change," Nix said.

The cost of compliance with the loan conditions far outweighed the advantages, Nix said.

First Citizens initially thought having the additional capital would be beneficial if the recession lasts longer than expected.

Having the extra money "would provide more flexibility in its lending activities," the bank said in a statement.

"Obviously, in this environment, capital is king," Nix said. "You can never have too much capital."

At least 16 South Carolina-based banks have borrowed about $610 million through the TARP program, which is part of the federal government's economic stimulus package.

Earlier this month, most banks said they planned to keep the money until it's due, though some indicated they might repay the loans before they're due if the economy improves.

The TARP loans were offered by the federal government to thaw consumer credit brought about by the recession and spur spending.

To obtain a loan, banks have to meet rigorous standards. Being approved for a loan was considered proof the bank was stable and deposits were safe.

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