June 19, 2009
Authored by: Bryan Cave Leighton Paisner
On June 9, 2009, the Treasury announced the completion of the thirtieth round of TARP Capital infusions. The Treasury purchased a total of approximately $40 million in securities from 3 financial institutions on Friday, June 5, 2009, and has now invested in 617 institutions, totaling approximately $199.4 billion.
First Trust Corporation, New Orleans, Louisiana, received the largest infusion, $18 million. Covenant Financial Corporation, Clarksdale, Mississippi, received the smallest infusion, $5 million.
Of note in this round, OneFinancial Corporation of Little Rock, Arkansas, became the first institution to receive a TARP Capital investment under the expansion for small community banks. Under the expansion program, OneFinancial received an investment of $17.3 million (approximately 5% of its risk-weighted assets), while under the normal TARP Capital terms, OneFinancial would have only been eligible to receive approximately $10.4 million (3% of risk-weighted assets).
On June 3, 2009, two institutions redeemed securities from the Treasury: HF Financial Corp. and Valley National Bancorp. HF Financial redeemed all of their TARP preferred stock for $25 million, while Valley National became the first institution to redeem only a portion of its preferred stock – $75 million of the $300 million original investment amount. As of June 9, 2009, twenty-two institutions have re-paid approximately $1.9 billion, and Treasury’s outstanding investment equals approximately $197.5 billion.
Click here to view our updated TARP Map.
Click here to view our updated list of TARP Capital recipients ordered by state and a description of our methodology in compiling the list.