WASHINGTON (TheStreet) -- The U.S. Treasury on Wednesday announced six repurchases of warrants or repayments of bailout money provided by the government through the Troubled Asset Relief Program, or TARP.
Taxpayers have now recovered "more than 99% (about $244 billion) of the approximately $245 billion in total funds disbursed for TARP investments in banks," the Treasury said. The agency estimated that "bank programs within TARP will ultimately provide a lifetime profit of nearly $20 billion to taxpayers."
The following six TARP transactions took place on Wednesday:
- Fifth Third Bancorp (FITB) - Get Report of Cincinnati repurchased 43.6 million warrants held by the Treasury to purchase the company's stock, for $280 million. Fifth Third had repurchased $3.4 billion in preferred shares held by the government Feb. 2 and has now fully exited TARP.
- National Penn Bancshares (NPBC) of Boyertown, Pa., repurchased all of its outstanding TARP preferred stock and paid additional dividends for a total of $150.6 million.
- Lakeland Bancorp (LBAI) - Get Report of Oak Ridge, N.J., repurchased $20 million in TARP preferred shares and paid accrued dividends of $86,000. The company still has $19 million in TARP preferred outstanding.
- Stockmens Financial Corp. of Rapid City, S.D., repurchased all of its remaining TARP preferred shares and additional preferred shares that the Treasury had obtained by exercising warrants, for a total of $12.4 million.
- Bridge Capital Holdings (BBNK) of San Jose, Calif., paid the Treasury $8.9 million to complete its repurchase of TARP preferred shares, including accrued dividends. The company had repurchased $15 million in TARP preferred shares Feb. 23.
- Heritage Bancshares (HBKS) of Norfolk, Va., paid $2.6 million to repurchase TARP preferred shares and pay accrued dividends. The company still owes $7.5 million in TARP money.
The Treasury also said that, taken as a whole, including the extraordinary assistance provided to
American International Group
, would result in "little or no cost to taxpayers," adding that the ultimate cost of the entire bailout program was "likely to be limited to funds disbursed for the Treasury's foreclosure-prevention programs, which were not expected to be recovered."
In President Obama's original 2012 budget, the administration had projected a $48 billion cost to taxpayers from TARP.
Banks with the largest amounts of TARP money still owed to the government include
of Atlanta, with $4.85 billion in preferred shares held by the Treasury;
of Birmingham, Ala., which owes $3.5 billion in TARP money; and
of Cleveland, which has $2.5 billion in TARP preferred shares held by the government.
All three are expected to raise common equity and fully repay the government soon after the
completes its latest round of so-called stress tests.
--Written by Philip van Doorn in Jupiter, Fla.
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Philip W. van Doorn is a member of TheStreet's banking and finance team, commenting on industry and regulatory trends. He previously served as the senior analyst for TheStreet.com Ratings, responsible for assigning financial strength ratings to banks and savings and loan institutions. Mr. van Doorn previously served as a loan operations officer at Riverside National Bank in Fort Pierce, Fla., and as a credit analyst at the Federal Home Loan Bank of New York, where he monitored banks in New York, New Jersey and Puerto Rico. Mr. van Doorn has additional experience in the mutual fund and computer software industries. He holds a bachelor of science in business administration from Long Island University.