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 Treasury Department Announces $248.5 Million in Proceeds from Pricing of Auctions of Preferred Stock and Subordinated Debt Positions of Twelve Financial Institutions


7/27/2012

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 in May 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 and subordinated debt positions (the “CPP Securities”) in the following twelve institutions at the following prices:

Issuer and Security

Price per share* or per $1,000 aggregate principal amount

Number of shares or aggregate principal amount   sold

Aggregate Gross Proceeds

CBS Banc-Corp., Russellville, Alabama

 

 

 

Fixed Rate Cumulative Perpetual Preferred Stock, Series A

$905.20

24,300

$21,996,360.00

Fixed Rate Cumulative Perpetual Preferred Stock, Series B

921.00

1,215

1,119,015.00

 

 

 

23,115,375.00

Commonwealth Bancshares, Inc., Louisville, Kentucky

 

 

 

7.7% Senior Subordinated Securities

750.00

$20,400,000

15,300,000.00

13.8% Warrant Senior Subordinated Securities

890.00

$1,020,000

907,800.00

 

 

 

16,207,800.00

Diamond Bancorp., Inc., Washington, Missouri

 

 

 

7.7% Senior Subordinated Securities

730.25

$20,445,000

14,929,961.25

13.8% Warrant Senior Subordinated Securities

770.50

$1,022,000

787,451.00

 

 

 

15,717,412.25

Exchange Bank, Santa Rosa, California

 

 

 

Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series A, no par value

875.25

43,000

37,635,750.00

Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series B, no par value

965.10

2,150

2,074,965.00

 

 

 

39,710,715.00

Fidelity Financial Corporation, Wichita, Kansas

 

 

 

Fixed Rate Cumulative Perpetual Preferred Stock, Series A

891.26

36,282

32,336,695.32

Fixed Rate Cumulative Perpetual Preferred Stock, Series B

960.60

1,814

1,742,528.40

 

 

 

34,079,223.72

First Community Financial, Joliet, Illinois

 

 

 

Series C, 9% cumulative perpetual, $1.00 par value per share, Preferred Stock

661.50

1,100

727,650.00

 

 

 

 

First Western Financial, Inc., Denver, Colorado

 

 

 

Fixed Rate Cumulative Perpetual Preferred Stock, Series B

828.50

428

354,598.00

Fixed Rate Cumulative Perpetual Preferred Stock, Series C

775.00

8,000

6,200,000.00

 

 

 

6,554,598.00

Market Street Bancshares, Inc., Mount Vernon, Illinois

 

 

 

7.7% Senior Subordinated Securities Due 2039

899.10

$20,300,000

18,251,730.00

13.8% Senior Subordinated Security Due 2039

820.75

$1,015,000

833,061.25

 

 

 

19,084,791.25

Marquette National Corporation, Chicago, Illinois

 

 

 

Fixed Rate Cumulative Perpetual Preferred Stock, Series A

720.25

35,500

25,568,875.00

Fixed Rate Cumulative Perpetual Preferred Stock, Series B

825.25

1,775

1,464,818.75

 

 

 

27,033,693.75

Premier Financial Bancorp., Inc., Huntington, West Virginia

 

 

 

Fixed Rate Cumulative Perpetual Preferred Stock, Series A, no par value

 

901.03

22,252

20,049,719.56

Park Bancorporation, Madison, Wisconsin

 

 

 

Fixed Rate Cumulative Perpetual Preferred Stock, Series A

730.25

23,200

16,941,800.00

Fixed Rate Cumulative Perpetual Preferred Stock, Series B

780.25

1,160

905,090.00

 

 

 

17,846,890.00

Trinity Capital Corporation, Los Alamos, New Mexico

 

 

 

Fixed Rate Cumulative Perpetual Preferred Stock, Series A

750.25

35,539

26,663,134.75

Fixed Rate Cumulative Perpetual Preferred Stock, Series B

941.20

1,777

1,672,512.40

 

 

 

28,335,647.15

 

*Reflects a liquidation price of $1,000 per share.

 

Treasury did not proceed with the sale of its Series B preferred stock in First Community Financial and its Series A preferred stock in First Western Financial,Inc.and sold approximately 67% of its Series C preferred stock in First Western Financial, Inc., due to the fact that Treasury did not receive sufficient bids above the respective minimum prices for each security in accordance with the auction procedures.  Treasury set a minimum price for each security as part of the auctions in ordertoprotect taxpayer interests.


The aggregate gross proceeds to Treasury from the auctions are expected to be approximately $248.5 million. This is the first auction Treasury is conducting that includes CPP Securities of institutions with no publicly traded common equity.

 

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 $265 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. As described in the announcement, sales would include auctions of individual investments, as well as potentially combining individual investments together into auction pools.  Beginning in the fall of 2012, Treasury expects to conduct the first in a series of pooled auctions of CPP Securities.

“TARP's bank investment programs were critical to stabilizing an economy in freefall and have already realized a nearly $20 billion positive return for taxpayers,” said Assistant Secretary for Financial Stability Tim Massad. “These auctions are an important part of our efforts to wind down the program in a way that helps support our nation's community banks and recovers additional taxpayer dollars.”

The closings for the auctions are expected to occur on or about August 9 and 10, 2012, subject to customary closing conditions.  The auctions were priced through a modified Dutch auction. 

The CPP Securities were offered only to (1) “qualified institutional buyers” as defined in Rule 144A under the Act, (2) certain 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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