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Treasury completes $1.5 billion in bank investments

The Treasury Department said Thursday it had finalized an additional $1.5 billion in bank investments, including stakes in 17 institutions that were…

By user , in news , at January 22, 2009

The Treasury Department said Thursday it had finalized an additional $1.5 billion in bank investments, including stakes in 17 institutions that were new to BailoutSleuth’s running tally.

Those 17 companies got a total of $363 million in taxpayer capital.

Dickinson Financial Corp. II, of Kansas City, Mo., got $146 million. The privately held company operates Bank Midwest, Armed Forces Bank and several other banks. Its chief executive, Rick L. Smalley, recently completed his second three-year term on the board of directors of the Federal Reserve Bank of Kansas City.

Old Second Bancorp Inc., of Aurora, Ill., got $73 million in taxpayer capital, while State Bancshares Inc., based in Fargo, N.D., got $50 million. 

Citizens & Northern Corp., of Wellsboro, Pa., got $26.4 million, Baraboo Bancorporation, of Baraboo, Wis., received $20.7 million, and BNCCORP Inc., of Bismarck, N.D. got $20.1 million.

The Treasury Department is injecting capital into the banks through the purchase of preferred stock. Those shares pay annual dividends of 5 percent for the first five years, and 9 percent thereafter.

Publicly traded banks also give the government warrants to buy shares of their common stock, which could provide a return to taxpayers if they increase in value.  Privately traded institutions give the government warrants to buy more preferred stock. The Treasury Department has been exercising those warrants immediately.

Other banks getting money in the new wave of investments include Centra Financial Holdings Inc., of Morgantown, W.Va., which got $15 million, and Morrill Bancshares, of Merriam, Kan., which got $13 million.

First Manitowoc Bancorp Inc., of Manitowoc, Wis., got $12 million, while TCB Holding Co., of The Woodlands, Tex., got $11.7 million.

Follow the link for the remainder of the new recipients.Continue reading Treasury completes $1.5 billion in bank investments.

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