Our routine search of Securities and Exchange Commission filings by banks seeking additional capital through the Treasury Department turned up two more institutions that won federal approval last week.
Both are based in Virginia. Collectively, they will sell as much as $87 million in preferred stock to the Treasury Department.
Virginia Commerce Bancorp Inc., which has headquarters in Arlington, Va., will get $71 million in taxpayer money. The bank reported last month that its earnings for the third quarter were down 60.9 percent from the previous year, in part because of higher charge-offs for troubled real estate loans.
The bank raised $25 million through private channels in September and is seeking to raise an additional $25 million.
"While we are well-capitalized beyond regulatory guidelines, the addition al capital provided by the Treasury's Capital Purchase Program will further strengthen our position and allow us to provide much needed credit to businesses and consumers throughout our market," said Peter A. Converse, the company's chief executive officer.
The Treasury Department announced in October that it would inject $250 billion into U.S. banks by purchasing preferred stock that pays annual dividends of 5 percent a year for the first five years and 9 percent thereafter. So far, the agency has approved investments in roughly 120 banks. The money is part of the $700 billion Troubled Asset Relief Program approved by Congress and President George W. Bush.
Valley Financial Corp., of Roanoke, Va., said it would get $16 million through the program. The company's earnings for the third quarter and first nine months of the year were both slightly higher than the comparable figures for 2007. Valley Financial said the additional capital would add to its already strong capital position and help it better serve customers in its region.
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