Another round of TARP investments

The Treasury Department said Tuesday it completed investments in 28 U.S. banks, including 21 that had not previously appeared on BailoutSleuth's running tally of institutions getting taxpayer capital.

The deals were worth $394.9 million, lifting the total amount that the government has invested through its stock-purchase program to nearly $196.8 billion.

All but a handful of the banks on this week's list are privately held. The Treasury Department's stock purchases are part of the broader $700 billion Troubled Asset Relief Program.

Lakeland Financial Corp., of Warsaw, Ind., got the biggest capital injection -- $56 million. Its subsidiary, Lake City Bank, serves 12 counties in northern Indiana. The company reported profits of $19.7 million for 2008, up 2.6 percent from 2007.

TriState Capital Holdings Inc., which has headquarters in Pittsburgh, got $23.0 million in taxpayer capital. The privately held company has branches in Pennsylvania, Ohio and New Jersey.

Central Bancorp Inc., of Garland, Tex., sold $22.5 million in preferred stock to the government, while Community First Inc., of Columbia, Tenn., sold $17.8 million worth.

Southern First Bancshares Inc., of Greenville, S.C., got $17.3 million in TARP funds. The company reported profits of $1.9 million last year, down 44.1 percent from 2007. It attributed the decline to increased loan-loss provisions and a writeoff on its shares in Fannie Mae, the mortgage giant that was taken over by the government.

Two other banks got more than $10 million each in the Treasury Department's latest round of investments. Under the program, the government buys preferred stock that pays cash dividends of 5 percent annually for the first five years, and 9 percent thereafter.

Medallion Bank, of Salt Lake City got $11.8 million in taxpayer capital. Ridgestone Financial Services Inc., of Brookfield, Wis., got $10.9 million.

To see the other banks that got TARP funds in the latest round of transactions, follow the link to the rest of the story.