7 More Banks Pay Back TARP Bailout Money (TAYC, ABCB, FDEF, FFKT, LNBB, FCVA, UBMI)

The U.S. Treasury Department is that much closer to winding down the Troubled Asset Relief Program (TARP).  Today came word that over the last week it has received some $245 million in proceeds from seven different financial institutions.  While none of these are major banks, the argument that the government did not do well here weakens just that much more as this was profitable.

The Treasury Department said, “TARP’s bank programs have already earned a significant profit for taxpayers. Including the expected proceeds from today’s transaction, Treasury has now recovered $264 billion from TARP’s bank programs through repayments, dividends, interest, and other income – compared to the $245 billion initially invested.”

Here are the banks under the repayment which was announced on Thursday:

• Taylor Capital Group, Inc. (NASDAQ: TAYC) of Rosemont, Illinois paid all of its 104,823 shares priced at $893.50 per share (approximately $92 million net proceeds);
• Ameris Bancorp (NASDAQ: ABCB) of Moultrie, Georgia redeemed all of its 52,000 shares priced at $930.60 per share (approximately $48 million net proceeds);
• First Defiance Financial Corp. (NASDAQ: FDEF) of Defiance, Ohio redeemed all of its 37,000 shares priced at $962.66 per share (approximately $35 million net proceeds);
• Farmers Capital Bank Corp. (NASDAQ: FFKT) of Frankfort, Kentucky redeemed all of its 30,000 shares priced at $739.89 per share (approximately $22 million net proceeds);
• LNB Bancorp Inc. (NASDAQ: LNBB) of Lorain, Ohio redeemed all of its 25,223 shares priced at $869.17 per share (approximately $22 million net proceeds);
• First Capital Bancorp Inc. (NASDAQ: FCVA) of Glen Allen, Virginia redeemed all of its 10,958 shares priced at $920.11 per share (approximately $10 million net proceeds);
• United Bancorp Inc. (NASDAQ: UBMI) of Ann Arbor, Michigan repaid all of its 20,600 shares priced at $825.50 per share (approximately $17 million net proceeds).

The total came to an overall total of 15 percent above the minimum prices set for the auctions. The TARP is still alive, but it is that much closer to being wound down.

JON C. OGG