On June 16, 2009, the Treasury announced the completion of the thirty-first round of TARP Capital infusions. The Treasury purchased a total of approximately $39 million in securities from 7 financial institutions on Friday, June 12, 2009, and has now invested in 624 institutions, totaling approximately $199.5 billion.
River Valley Bancorporation, Wausau, Wisconsin, received the largest infusion, $15 million. SouthFirst Bancshares, Inc., Sylacuaga, Alabama, received the smallest infusion, $2.8 million.
Of note in this round, three institutions took advantage of the TARP Capital expansion for small community banks: First Vernon Bancshares, Virginia Company Bank, and First Financial Bancshares. Under the expansion program, First Vernon and First Financial received investments of approximately 5% of their risk-weighted assets and Virginia Company received an investment of approximately 4% of its risk-weighted assets, while under the normal TARP Capital terms, they would have been eligible to receive only 3% of their risk-weighted assets.
As of June 16, 2009, twenty-two institutions have re-paid approximately $1.9 billion, and Treasury’s outstanding investment equals approximately $197.6 billion. (more…)
On June 9, 2009, the Treasury announced the completion of the thirtieth round of TARP Capital infusions. The Treasury purchased a total of approximately $40 million in securities from 3 financial institutions on Friday, June 5, 2009, and has now invested in 617 institutions, totaling approximately $199.4 billion.
First Trust Corporation, New Orleans, Louisiana, received the largest infusion, $18 million. Covenant Financial Corporation, Clarksdale, Mississippi, received the smallest infusion, $5 million.
Of note in this round, OneFinancial Corporation of Little Rock, Arkansas, became the first institution to receive a TARP Capital investment under the expansion for small community banks. Under the expansion program, OneFinancial received an investment of $17.3 million (approximately 5% of its risk-weighted assets), while under the normal TARP Capital terms, OneFinancial would have only been eligible to receive approximately $10.4 million (3% of risk-weighted assets).
On June 3, 2009, two institutions redeemed securities from the Treasury: HF Financial Corp. and Valley National Bancorp. HF Financial redeemed all of their TARP preferred stock for $25 million, while Valley National became the first institution to redeem only a portion of its preferred stock – $75 million of the $300 million original investment amount. As of June 9, 2009, twenty-two institutions have re-paid approximately $1.9 billion, and Treasury’s outstanding investment equals approximately $197.5 billion.
On June 2, 2009, the Treasury announced the completion of the twenty-ninth round of TARP Capital infusions. The Treasury purchased a total of approximately $89 million in securities from 8 financial institutions on Friday, May 29, 2009, and has now invested in 614 institutions, totaling approximately $199.4 billion.
Citizens Bancshares, Co., Chillicothe, Missouri, received the largest infusion, $24.9 million. American Premier Bancorp, Arcadi, California, received the smallest infusion, $1.8 million.
On May 27, 2009, four institutions redeemed their securities from the Treasury: Washington Federal Inc. ($200 million), First Niagara Financial Group ($184 million), Berkshire Hills Bancorp ($40 million), and First Manitowoc Bancorp ($12 million). As of May 27, 2009, twenty institutions have re-paid approximately $1.7 billion, and Treasury’s outstanding investment equals approximately $197.6 billion.
On May 27, 2009, the Treasury announced the completion of the twenty-eighth round of TARP Capital infusions. The Treasury purchased a total of approximately $108 million in securities from 12 financial institutions on Friday, May 22, 2009, and has now invested in 606 institutions, totaling approximately $199.3 billion.
Diamond Bancorp, Inc., Washington, Missouri, received the largest infusion, $20.5 million. First Advantage Bancshares, Inc., Coon Rapids, Minnesota, received the smallest infusion, $1.2 million.
On May 20, 2009, Somerset Hills Bancorp and SCBT Financial Corporation redeemed their securities from the Treasury for $7.4 million and $65 million, respectively. To date, sixteen institutions have re-paid approximately $1.3 billion, and Treasury’s outstanding investment equals approximately $197.9 billion.
On June 1, 2009, the Federal Reserve announced the standards that the Federal Reserve would apply in determining whether the nineteen largest bank holding companies (the “Stress Test” participants) would be permitted to redeem their outstanding TARP Capital Purchase Program securities.
Under the TARP Capital Purchase Program, an institution may seek to redeem the TARP investment at any time, subject to the approval of the institution’s primary federal regulator. While institutions were initially limited in their ability to redeem the TARP investment during its first three years, Congress removed that limitation under the American Recovery and Reinvestment Act of 2009. As of June 1, 2009, 20 institutions had redeemed their TARP Capital Purchase Program investment. The Federal Reserve announced that the first approvals for redemptions by the nineteen largest bank holding companies would be announced during the week of June 8, 2009.
On May 19, 2009, the Treasury announced the completion of the twenty-seventh round of TARP Capital infusions. The Treasury purchased a total of approximately $108 million in securities from 14 financial institutions on Friday, May 15, 2009, and has now invested in 594 institutions, totaling approximately $199.2 billion.
Mercantile Bank Corporation, Grand Rapids, Michigan, received the largest infusion, $21.0 million. Riverside Bancshares, Inc., Little Rock, Arkansas, received the smallest infusion, $1.1 million.
On May 13, 2009, Alliance Financial Corp. and Texas Capital Bancshares, Inc. redeemed their securities from the Treasury for $125 million and $75 million, respectively. To date, fourteen institutions have re-paid approximately $1.3 billion, and Treasury’s outstanding investment equals approximately $197.9 billion.
On May 12, 2009, the Treasury announced the completion of the twenty-sixth round of TARP Capital infusions. The Treasury purchased a total of approximately $42 million in securities from 7 financial institutions on Friday, May 8, 2009, and has now invested in 580 institutions, totaling approximately $199.1 billion.
On May 5, 2009, the Treasury announced the completion of the twenty-fifth round of TARP Capital infusions. The Treasury purchased a total of approximately $45.5 million in securities from 7 financial institutions on Friday, May 1, 2009, and has now invested in 573 institutions, totaling approximately $199.1 billion.
Village Bank and Trust Financial Corp., Midlothian, Virginia, received the largest infusion, $14.7 million. CenterBank, Milford, Ohio, received the smallest infusion, $2.3 million.
Of note in this twenty-fifth round, two subchapter S institutions received TARP Capital investments – OSB Financial Services, Inc. ($6.1 million) and Security State Bank Holding Company ($10.8 million).
In advance of releasing the “Stress Test” results (scheduled for 5:00pm on Thursday, May 7, 2009), the Treasury and the federal banking regulators released a joint statement about the Supervisory Capital Assistance Program on May 6, 2009. The joint statement also includes information about the process that will be used for institutions desiring to redeem their TARP Capital Purchase Program Preferred stock.
A few key points about the Stress Test:
- The government intends to announce, for each of the 19 institutions individually and in the aggregate, estimates of: losses and loss rates across select categories of loans; resources available to absorb those losses; and the resulting necessary additions to the capital buffers.
- Any of the 19 needing to raise capital will be given until June 8, 2009 to develop a detailed capital plan, and until November 9, 2009 to implement that plan.
- As part of the capital plan, an institution may apply for Mandatory Convertible Preferred under the TARP Capital Assistance Program, and may convert its existing TARP Capital Purchase Program Preferred shares into the Capital Assistance Program Convertible Preferred shares.
- “Smaller financial institutions generally maintain capital levels, especially common equity, well above regulatory capital standards.”
- Accordingly, the government does not intend to expand the Stress Test beyond the initial 19 bank holding companies (at least officially).
- The Treasury reiterates that the TARP Capital Assistance Program is available to other institutions on the same terms and conditions applicable to the 19 Stress Tested banks. The Treasury intends to process applications received “in an expedient manner.” (No discussion is made of when or if term sheets will be made available for non-publicly traded institutions to participate in the Capital Assistance Program.
On April 28, 2009, the Treasury announced the completion of the twenty-fourth round of TARP Capital infusions. The Treasury purchased a total of approximately $121.8 million in securities from 12 financial institutions on Friday, April 24, 2009, and has now invested in 566 institutions, totaling approximately $199 billion. (more…)