Fifteen more banks have announced their acceptance into the Treasury Department's stock purchase program, including a Colorado bank that specializes in lending to small and midsize businesses.
The latest approvals represent $643 million in taxpayer investment, and push the total number of banks getting money through the Troubled Asset Relief Program above 200.
CoBiz Financial Inc., based in Denver, said it was approved to sell $64.5 million in preferred stock to the government. CoBiz is the parent company of Colorado Business Bank and Arizona Business Bank. Its earnings for the third quarter were unchanged from the same period last year, and its provisions for loan losses were slightly lower. CoBiz also has raised $20.4 million from private investors to strengthen its capital base.
Community Trust Bancorp Inc., of Pikeville, Ky., said it was cleared for $68 million in taxpayer investment. The bank posted a $577,000 loss in the third quarter, compared to a profit of $8.62 million a year earlier. It attributed the reversal to a writedown on its investment in Fannie Mae and Freddie Mac, the government-sponsored mortgage companies that were put into conservatorship in September.
First Bancorp, based in Troy, N.C., was approved to sell $65 million in stock to the government. First Bancorp's earnings were up 7.9 percent for the third quarter, in part because of its acquisition this year of Great Pee Dee Bancorp. However, the bank said its provision for loan losses doubled from the third quarter of 2007.
Enterprise Financial Services Corp., of St. Louis, will get $62 million in government capital. Union Bancshares Inc., of Bowling Green, Va., will get $59 million. Lakeland Bancorp Inc., of Oak Ridge, N.J. also was approved for $59 million in taxpayer money.
BancTrust Financial Group of Mobile, Ala., said it won approval for $50 million. MetroCorp Bancshares Inc., of Houston, will get $45 million, and First M & F Corp., which has headquarters in Kosciusko, Miss., will get $40 million.
MidWestOne Financial Group, of Iowa City, Iowa., said it was approved for $34.9 million in taxpayer capital. Centrue Financial Corp., which recently moved its headquarters from northern Illinois to St. Louis, was approved for $32.7 million.
Farmers Capital Bank Corp., of Frankfort, Ky., said it would get $30 million from the Treasury Department. Security Federal Corp., of Aiken, S.C., will get $18 million. BCSB Bancorp, of Baltimore, will get $10.8 million. It is the parent of Baltimore County Savings Bank. Pacific Coast National Bancorp, in San Clemente, Calif., will get $4.12 million.
The preferred stock that the banks are selling to the government pays a 5 percent annual dividend for the first five years, and 9 percent thereafter. The Treasury Department also will get warrants to buy common stock, which could provide a return to taxpayers if the banks' shares prices rise over time.
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