The Treasury Department has approved 13 more banks for its share purchase program. The latest group of recipients will split roughly $1.15 billion in taxpayer money.
Whitney Holding Corp., which has headquarters in New Orleans, got the biggest chunk of money. It was cleared to sell $301 million in preferred stock to the government. Whitney said last month that its earnings for the third quarter were off nearly 85 percent from the same period a year earlier, largely because of provisions for losses on real estate loans in Florida.
Wintrust Financial Corp., based in Lake Forest, Ill., will get $250 million. Wintrust is the holding company for 15 Midwestern banks and as a mortgage company. The company had a loss of $2.44 million for the third quarter, compared with a profit of $9.92 million a year ago. Wintrust also raised $50 million in a private stock sale in August.
National Penn Bancshares Inc., of Boyertown, Pa., was cleared to receive $150 million in taxpayer money. It reported a 14.4 percent increase in earnings for the third quarter, even with a $13 million writeoff on the value of what it called a "synthetic collateralized debt obligation.''
Pinnacle Financial Partners, which has headquarters in Nashville, Tenn., was approved for $95 million in capital. Another company in that state, Green Bancshares, of Greeneville, will get $72.3 million.
TowneBank, of Suffolk, Va., said its plans to sell $76.5 million in stock to the Treasury Department. NewBridge Bancorp., which is based in Greensboro, N.C., will get $52 million. The Bancorp Inc., of Wilmington, Del., $45.2 million.
Under the program, banks sell preferred stock that pays annual dividends of 5 percent for the first five years and 9 percent thereafter. The banks also give the Treasury Department warrants to buy common stock, which could provide a return to taxpayers if the market price of their shares rise over time.
State Bancorp Inc., of Jericho, N.Y., won approval for $36 million in government funding. Horizon Bancorp of Michigan City, Ind., said it would receive $25 million in new capital.
Bridge Capital Holdings, of San Jose, Calif., is getting $24 million from the Treasury Department. First Community Corp., of Lexington, S.C., is getting $11.4 million, and Mid Penn Bancorp Inc., in Millersburg, Pa., is getting $10 million.
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