This week more banks announced their plans to raise capital through stock sales, with the goal of repaying the government money they received through the Troubled Asset Relief Program.
Heritage Financial Corporation, the Olympia, Wash.-based holding company that operates
After deducting underwriting costs and commissions, Heritage hopes to net about $40.5 million. The offering is expected to close on Sept. 22.
Heritage intends to use the capital raised from the sale for "opportunistic acquisitions, organic growth and general corporate purposes." It said that the infusion of capital will also put it in a better position to redeem "some or all" of the preferred stock it issued to the U.S. Treasury under the TARP Capital Purchase Program in exchange for the $21 million it received onNov. 21.
Whenever Heritage receives approval to repay the loan, it also will have to pay the Treasury any dividends that accrued after it made a dividend payment of $580,000 on May 31.
Another bank, Home BancShares, Inc., of Conway, Ark., announced that it is offering 4.95 million shares of common stock, with the goal of netting $93.4 million in new capital.Home BancShares has 49 branches in Arkansas and 12 branches in Florida.
In a Form 424b5 prospectus filed Thursday with the SEC, Home BancShares said that after the offering it will "review a potential redemption of the Series A preferred shares and the warrant" it issued to the Treasury in exchange for $50 million in aid on Jan. 16.
The company notes that any such redemption will require the approval of the Federal Reserve and the Treasury. It would also have to repay the dividends that have accrued since it made a $826,400 dividend payment to the Treasury on May 31.
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