Daniel Gross

More TARP Returns: Four Banks Return $15.8 m

Contrary Indicator

Last week's big crisis-era bailout news was Region Financial finally repaying its $3.5 billion in TARP funds. Regions was one of the largest recipients of aid, and was the last truly massive bank that had yet to repay. But Regions wasn't the only bank to return cash to Treasury last week. Four small banks returned nearly $16 million capital through various means.

New Jersey-based Peapack-Gladstone Financial Corporation in January returned the last of the $28 million it received in January 2009. On April 4, it paid $110,000 to repurchase warrants it had granted Treasury as part of the original transaction.

Titonka Bancshares, based in Titonka, Iowa, paid back the $2.117 million in CPP funds it took in April 2009, and paid another $106,000 for preferred shares it had granted Treasury in lieu of warrants. It has exited the program.

Mercantile Bank Corporation, based in Grand Rapids, Michigan, repaid half of the $21 million it had taken in May 2009, or $10.5 million. It still owes Treasury $10.5 million.

Wachusett Financial Services, the parent company of Clinton Savings Bank, based in Clinton, Massachusetts, returned $3 million to Treasury. That represents one quarter of the $12 million in aid it took in December 2009. The bank still owes Treasury $9 million.

In all, the repayments and repurchase brought $15.8 million into federal coffers.

Daniel Gross is economics editor at Yahoo! Finance

Follow him on Twitter @grossdm; email him at grossdaniel11@yahoo.com

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