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 Treasury Department Announces $67.0 Million In Proceeds From Pricing of Auctions of Preferred Stock and Subordinated Debt of Eleven Financial Institutions


11/2/2012

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 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 (the “CPP Securities”) in the following eleven 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
to be sold

 

Aggregate Gross Proceeds

 

BankGreenville

 

Financial Corporation, Greenville, SC
 

 

 

 

 

 

Fixed Rate Cumulative Perpetual Preferred Stock, Series A

 

$900.00

 

1,000

 

$900,000.00

 

Fixed Rate Cumulative Perpetual Preferred Stock, Series B

 

937.61

 

50

 

46,880.50

 

 

 

 

 

 

 

946,880.50

 

Capital Pacific Bancorp, Portland, OR

 

 

 

 

 

 

 

Fixed Rate Cumulative Perpetual Preferred Stock, Series A

 

938.36

 

4,000

 

3,753,440.00

 

Fixed Rate Cumulative Perpetual Preferred Stock, Series B

 

970.21

 

200

 

194,042.00

 

 

 

 

 

 

 

3,947,482.00

 

F&C Bancorp, Inc., Holden, MO

 

 

 

 

 

 

 

7.7% Senior Subordinated Securities Due 2039

 

958.77

 

$2,993,000

 

2,869,598.61

 

13.8% Senior Subordinated Securities Due 2039

 

1,000.00

 

$150,000

 

150,000.00

 

 

 

 

 

 

 

3,019,598.61

 

Farmers Enterprises, Inc., Great Bend, KS

 

 

 

 

 

 

 

7.7% Senior Subordinated Securities Due 2039

 

962.90

 

$12,000,000

 

11,554,800.00

 

13.8% Senior Subordinated Securities Due 2039

 

993.81

 

$600,000

 

596,286.00

 

 

 

 

 

 

 

12,151,086.00

 

First Freedom Bancshares, Inc., Lebanon, TN

 

 

 

 

 

 

 

Fixed Rate Cumulative Perpetual Preferred Stock, Series B

 

922.50

 

8,700

 

8,025,750.00

 

Fixed Rate Cumulative Perpetual Preferred Stock, Series C

 

991.21

 

261

 

258,705.81

 

 

 

 

 

 

 

8,284,455.81

 

Franklin Bancorp, Inc., Washington, MO

 

 

 

 

 

 

 

Fixed Rate Cumulative Perpetual Preferred Stock, Series A

 

632.50

 

5,097

 

3,223,852.50

 

Fixed Rate Cumulative Perpetual Preferred Stock, Series B

 

772.50

 

255

 

196,987.50

 

 

 

 

 

 

 

3,420,840.00

 

Regional Ba

 

nkshares, Inc., Hartsville, SC
 

 

 

 

 

 

Fixed Rate Cumulative Perpetual Preferred Stock, Series TS

 

Fixed Rate Cumulative Perpetual Preferred Stock, Series TW

 

925.00

 

1,500
75

 

1,387,500.00

 

1,000.00

 

75,000.00

 

 

 

 

 

 

 

1,462,500.00

 

Sound Banking Company, Morehead City, NC

 

 

 

 

 

 

 

Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series B

 

922.61

 

3,070

 

2,832,412.70

 

Fixed Rate Non-Cumulative Perpetual Preferred Stock, Series C

 

970.21

 

154

 

149,412.34

 

 

 

 

 

 

 

2,981,825.04

 

Three Shores Bancorporation, Inc., Orlando, FL

 

Fixed Rate Cumulative Perpetual Preferred Stock, Series B

 

Fixed Rate Cumulative Perpetual Preferred Stock, Series C

 

 

 

 

 

5,677

 

284

 

 

 

888.36

 

5,043,219.72

 

1,004.00

 

285,136.00

 

 

 

 

 

 

 

5,328,355.72

 

Timberland Bancorp, Inc., Hoquiam, WA
Fixed Rate Cumulative Perpetual Preferred Stock, Series A

 

 

 

 

 

16,641

 

 

 

14,352,862.50

 

862.50

 

 

 

 

 

 

 

 

 

Western Illinois Bancshares, Inc., Monmouth, IL

 

 

 

 

 

 

 

Fixed Rate Cumulative Perpetual Preferred Stock, Series A

 

942.90

 

6,855

 

6,463,579.50

 

Fixed Rate Cumulative Perpetual Preferred Stock, Series B

 

987.77

 

343

 

338,805.11

 

Fixed Rate Cumulative Perpetual Preferred Stock, Series C

 

932.77

 

4,567

 

4,259,960.59

 

 

 

 

 

 

 

11,062,345.20

 

 

 

 

 

 

 

 

 

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

 

 

 

The aggregate gross proceeds to Treasury from the auctions are expected to be approximately $67.0 million.  At settlement, winning bidders will be required to pay the applicable clearing prices for the CPP Securities plus accrued and unpaid dividends or interest, as applicable, on the CPP Securities.

“TARP’s bank programs helped stabilize our economy during the worst financial crisis since the Great Depression,” said Assistant Secretary for Financial Stability Timothy G. Massad. “Now, we’re moving to wind down our remaining investments in a way that helps strengthen our nation’s community banks and replaces temporary government support with private capital.”

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 $267 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 November 9, 2012 and November 13, 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 Securities Act of 1933, as amended (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 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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