Two more banks get TARP money

Two more banks have received taxpayer capital through the Treasury Department's $700 billion Troubled Asset Relief Program.

First Federal Bankshares of Arkansas Inc., based in Harrison, Ark., sold $16.5 million in preferred stock to the government. First Federal had profits of $2.5 million last year, off 3.8 percent from 2007. However, fourth quarter earnings were down 70 percent.

Citizens Bancshares Corp., of Atlanta, said it got $7.46 million through the Treasury Department's Capital Purchase Program, part of the broader TARP initiative. Citizens Bancshares had profits of $1.17 million through the first nine months of 2008, down nearly 38 percent from the same period in 2007. It said an increase in loan-loss provisions was the biggest factor in the earnings decline.

Citizens Bancshares is the parent company of Citizens Trust Bank, which primarily serves African-American customers . It has branches in Georgia and Alabama.

Under the Capital Purchase Program, banks sell the government preferred stock that carries a cash dividend of 5 percent a year for the first five years, and 9 percent thereafter.

Roughly 470 banks have received taxpayer capital through the program.