WASHINGTON – As part of its ongoing efforts to wind down and recover its remaining Capital Purchase Program (CPP) investments under the Troubled Asset Relief Program (TARP), the U.S. Department of the Treasury today announced its intention to sell several preferred stock and subordinated debt CPP investments. Treasury intends to conduct auctions for all of its preferred stock and subordinated debt positions (the CPP Securities) in the following 12 banks:
- First Western Financial, Inc., Denver, Colorado
- CBS Banc-Corp., Russellville, Alabama
- Exchange Bank, Santa Rosa, California
- Market Street Bancshares, Inc., Mount Vernon, Illinois
- Fidelity Financial Corporation, Wichita, Kansas
- Marquette National Corporation, Chicago, Illinois
- Premier Financial Bancorp., Inc., Huntington, West Virginia
- Diamond Bancorp., Inc., Washington, Missouri
- Park Bancorporation, Madison, Wisconsin
- Trinity Capital Corporation, Los Alamos, New Mexico
- First Community Financial, Joliet, Illinois
- Commonwealth Bancshares, Inc., Louisville, Kentucky
TARP’s bank programs have already earned a significant profit for taxpayers. To date, Treasury has recovered $264 billion from TARP’s bank programs through repayments, dividends, interest, and other income – compared to the $245 billion initially invested. Treasury has remaining outstanding CPP investments in 325 banks.
Treasury expects to commence the auctions, which will be offered principally to qualified institutional buyers, on or about July 23, 2012. These offerings will be executed using a modified Dutch auction methodology that establishes a market price by allowing investors to submit bids at specified increments similar to the process Treasury used to auction other CPP investments.
The CPP Securities that will be sold in the auction may not be offered or sold absent registration under, or an applicable exemption from, applicable state securities law. The CPP Securities will be offered only to (1) “qualified institutional buyers” as defined in Rule 144A under the Securities Act of 1933
and (2) in certain cases, certain directors and executive officers of the issuers of the CPP Securities. This press release does not constitute an offer to sell or the solicitation of an offer to buy the CPP Securities, and shall not constitute an offer, solicitation or sale in any jurisdiction in which, or to any persons to whom, such offering, solicitation or sale would be unlawful.