NEW YORK ( TheStreet) -- Two banks are looking today to exit the Troubled Assets Relief Program, or TARP, at a discount, while avoiding any dilution to their common stockholders.
The U.S. Treasury after Wednesday's market close will end its auction of preferred shares held by the government, for bailout assistance received by the banks at the height of the credit crisis.
The banks having their TARP preferred shares auctioned today include:
- Banner Corp. (BANR) of Walla Walla, Wash., which owes $124 million in TARP money.
- First Financial Holdings (FFCH) of Charleston, S.C., owing the government $65 million.
- MainSource Financial Group (MSFG) of Greensburg, Ind., which owes $57 million to the government.
- Seacoast Banking Corporation of Florida (SBCF), of Stuart, which owes the Treasury $50 million.
- Wilshire Bancorp (WIBC) of Los Angeles, owing $62.2 million.
- WSFS Financial (WSFS) of Wilmington, Del., which owes $52.6 million in TARP money.
All six holding companies filed prospectuses as part of the Treasury's TARP auction process, and two of the companies were granted permission by regulators to bid on their own TARP preferred shares.It is, of course, unknown how much a discount the two banks might get if they place winning bids, because the Treasury retains the right to decide how many of the TARP preferred shares to sell at the bid prices, and also could simply cancel the auction. Here's a quick look at the two banks set to bid on their own TARP preferred shares. Wilshire Bancorp
Shares of Wilshire Bancorp closed at $4.92 Tuesday, returning 36% year-to-date, following a 52% drop during 2011.
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