Tags: Six Banks Pay Back Treasury Bailout Funds

Six Banks Repay Total of $626 Million in Bailout Funds

Thursday, 30 Dec 2010 07:51 AM


Six banks have repurchased investments the government made under its taxpayer-funded financial rescue program, paying a total of $626 million including dividends, the Treasury Department said Wednesday.

With the latest payments, repayments by financial institutions under the Troubled Asset Relief Program now total $235 billion, with an additional $35 billion in income from dividends, interest, and the sale of other securities. The Treasury Department released a total $389 billion under TARP, created at the height of the financial crisis in October 2008.

The department released the following details of the latest repayments:

• EastWest Bancorp repurchased all of the $306.5 million in preferred shares it was issued under TARP's Capital Purchase Program. The bank, based in Pasadena, Calif., also paid accrued dividends of $1.9 million.

• Webster Financial Corp. repurchased all its $200 million worth of remaining outstanding shares, plus accrued dividends of $1.2 million. Webster, based in Waterbury, Conn., previously repurchased preferred shares totaling $100 million in March 2010 and $100 million in October.

• 1st Source Corp., of South Bend, Ind., repurchased all of its $111 million in outstanding shares, and paid accrued dividends of $678,333.

• Surrey Bancorp, based in Mount Airy, N.C., repurchased all $2 million in outstanding shares and $12,222 in accrued dividends. Surrey also repurchased additional preferred shares that the Treasury Department obtained from exercising warrants totaling $100,000, and paid accrued dividends on those additional preferred shares totaling $1,100.

• Nationwide Bankshares, based in West Point, Neb., repurchased all of the $2 million in outstanding subordinated debentures and paid accrued interest totaling $18,822. Nationwide Bankshares also repurchased additional subordinated debentures the Treasury Department obtained from exercising warrants totaling $100,000, and paid accrued dividends on them totaling $1,687.

• Haviland Bancshares Inc., of Haviland, Kan., repurchased all the $425,000 in outstanding shares and paid accrued dividends totaling $2,597. Haviland also repurchased $21,000 worth of additional preferred shares the department obtained from exercising warrants, and paid accrued dividends totaling $231.

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