Wednesday, April 1, 2009

Banks repay TARP money—one is a Belvidere S&L from some years back--TCF Financial

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By Chris Carey on April 1, 2009 7:04 AM | No Comments | No TrackBacks

Old National Bancorp said it returned the $100 million it received through the Treasury Department's Troubled Assset Relief Program.

Old National, based  in Evansville, Ind., is the eighth TARP receipient to either repay the government or file notification to do so.

Three other banks said Tuesday that they also had redeemed the preferred stock they issued to the Treasury Department in return for public money.

Signature Bank, of New York, returned $120 million. Iberiabank Corp., of Lafayette, La., repaid $90 million and Bank of Marin, of Novato, Calif., returned$28 million.

Old National had not previously announced its intention to return the TARP money. It offered no specific explanation for the move.

It said in a press release that it had performed a "rigorous stress test'' of its balance sheet and earnings, comparable to the test the Treasury Department is requiring of the largest TARP recipients.

"Based on the results of the stress test,'' Old National said, "The company believes that it's well positioned to withstand current and future economic challenges.''

The other banks that have filed notifications with the government to redeem their shares are TCF Financial Corp.; Sun Bancorp Inc.; Shore Bancshares Inc., and Centra Financial Inc.

The eight banks that have repaid their TARP money or initiated the process to repay it got a total of $828.5 million in taxpayer capital.

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