Two more banks have announced plans to sell common stock in anticipation of repaying bailout funding they received from the federal government.
Pennsylvania-based National Penn Bancshares Inc. said it expected to raise $125 million through a public offering.
The bank said it would use the additional capital to support ongoing business operations and possibly repurchase some of the $150 million in stock and warrants it gave the Treasury Department in exchange for assistance under the Troubled Asset Relief Program.
Since the bailout program began, many participants have regretted their initial involvement and the concomitant restrictions on executive pay and dividend distribution.
In order to leave, however, Treasury has insisted that banks prove their ability to raise money on the open market, such as with a successful stock offering.
Virginia-based Union Bankshares Corp. said it too would take that approach, saying in a statement that it would sell $62.5 million in common stock with an eye towards the "possible repurchase" of bailout funds.
The bank received $59 million from the TARP program. If approved to leave it will also have to pay accrued dividends.
0 Comments
Leave a comment