Auctions Part of Treasury’s Continued Efforts to Wind Down TARP’s
Bank Programs
Proceeds Deliver Additional Profit for Taxpayers on TARP’s Bank
Programs
WASHINGTON – As part of the strategy it outlined
for winding down its remaining Troubled Asset Relief Program (TARP) bank
investments, the U.S. Department of the Treasury announced that it priced
auctions of preferred stock (the “CPP Securities”) in the following four
institutions at the following prices:
|
Issuer and Security
|
Price per share*
|
Number of shares to be sold
|
Aggregate Gross Proceeds
|
|
Alpine
Banks of Colorado, Glenwood Springs, Colorado
|
|
|
|
|
Fixed Rate Cumulative Perpetual Preferred Stock,
Series A
Fixed Rate Cumulative Perpetual Preferred Stock, Series B
|
$812.50
|
70,000
3,500
|
$56,875,000.00
|
|
950.00
|
3,325,000.00
|
|
|
|
|
60,200,000.00
|
|
First Community Financial
Partners, Inc., Joliet, Illinois
|
|
|
|
|
Fixed Rate Cumulative Perpetual Preferred Stock,
Series B
|
652.50
|
22,000
|
14,355,000.00
|
|
F&M Financial
Corporation, Clarksville, Tennessee
|
|
|
|
|
Fixed Rate Cumulative Perpetual Preferred Stock,
Series A
Fixed Rate Cumulative Perpetual Preferred Stock,
Series B
|
787.50
|
17,243
862
|
13,578,862.50
|
|
870.00
|
749,940.00
|
|
|
|
|
14,328,802.50
|
|
F & M Financial
Corporation, Salisbury, North Carolina
|
|
|
|
|
Fixed Rate Cumulative Perpetual Preferred Stock,
Series A
Fixed Rate Cumulative Perpetual Preferred Stock,
Series B
|
950.00
|
17,000
850
|
16,150,000.00
|
|
921.30
|
783,105.00
|
|
|
|
|
16,933,105.00
|
|
|
|
|
|
*Reflects a liquidation preference of
$1,000 per share.
The aggregate gross proceeds to Treasury from the
auctions are expected to be approximately $105.8 million. At settlement,
winning bidders will be required to pay the applicable clearing prices for the
preferred stock plus accrued and unpaid dividends on the preferred stock from
and including August 15, 2012.
TARP’s
bank programs have already earned a significant profit for taxpayers. Including
the expected proceeds from the transactions announced today, Treasury has now
recovered $266 billion from TARP’s bank programs through repayments, dividends,
interest, and other income – compared to the $245 billion initially
invested. Each additional dollar recovered from TARP’s bank programs is an
additional dollar of profit for taxpayers.
These auctions are part of the strategy that
Treasury outlined in May for winding down its remaining TARP bank investments
in a way that protects taxpayer interests, promotes financial stability, and
preserves the strength of our nation’s community banks. Treasury indicated that
it intends to use a combination of repayments, restructurings, and sales to
manage and recover those remaining investments.
The closings for the auctions are expected to
occur on or about September 20 and 21, 2012, subject to customary closing
conditions. The offerings were priced through modified Dutch
auctions.
The CPP Securities were offered only to (1) domestic
“qualified institutional buyers” as defined in Rule 144A under the Act, (2)
certain domestic institutional “accredited investors” as defined in Rule 501(a)
under the Act that have total assets of not less than $25,000,000 and (3) in
certain cases, certain directors and executive officers of the issuers of the
CPP Securities. The CPP Securities sold in the auctions may not be
offered or sold absent registration under, or an applicable exemption from,
applicable state securities law.
This news release shall not constitute an offer
to sell or the solicitation of an offer to buy, nor shall there be any sale of
these securities in any state or jurisdiction in which such offer, solicitation
or sale would be unlawful prior to registration or qualification under the
securities laws of any such state or jurisdiction.
For more details on Treasury’s lifetime
cost estimates for TARP programs, please visit Treasury’s Monthly 105(a) Report
to Congress on TARP at this link.
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