Six banks return $2.7 billion to Treasury

By @ibtimes on

Six bank holding companies repaid a total of $2.7 billion in federal bailout funds they received during the financial crisis, the Treasury Department said on Wednesday.

Treasury said the banks repurchased preferred shares issued as part of the Capital Purchase Program, the main vehicle it used under its $700 billion bailout program to inject capital into U.S. banks. They also paid accrued dividends.

The firms repaying funds were:

* Huntington Bancshares of Columbus, Ohio, repaid $1.4 billion to retire Treasury preferred and paid accrued dividends of $7.2 million;

* First Horizon National Corp of Memphis, Tennessee, repaid $866.5 million to retire Treasury preferred shares and paid accrued dividends totaling $4.5 million;

* Wintrust Financial Corp of Lake Forest, Illinois, repaid $250 million to retire preferred shares and paid accrued dividends of $1.3 million;

* Susquehanna Bancshares Inc of Lititz, Pennsylvania, repaid $100 million worth of preferred shares and paid accrued dividends totaling $513,889;

* Heritage Financial Corp of Olympia, Washington, repaid $24 million in preferred shares and paid accrued dividends totaling $123,133, and

* The Bank of Kentucky Financial Corp repurchased $17 million of Treasury preferred shares and paid accrued dividends of $87,361.

The repayments bring overall repayments under the Treasury's Troubled Asset Relief Program to $234 billion out of the overall $389 billion it disbursed.

Including the repayments and income from dividends, interest and the sale of other securities, the Treasury said its total intake from TARP is now $269 billion.

The Treasury injected some $204.9 billion into more than 700 banks. It still has about $35 billion invested in mostly smaller banks.

Treasury Secretary Timothy Geithner said last week he expects the Treasury to earn a profit on all of its TARP investments with the exception of housing rescue programs.

He also said the final cost of Treasury bailouts may be under $25 billion.

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