Two more banks took steps this week to redeem shares sold to the government as part of the federal bailout package.
South Carolina-based First Financial Holdings Inc. announced a public stock offering valued at $65 million. In a statement, the bank said the capital injection would position the company for a withdrawal from the Troubled Asset Relief Program.
First Financial received $65 million in bailout funds.
In order to leave the program, banks must prove they would be financial stable without the assistance, and are capable of raising capital on the open market. Stock sales have become a popular means of meeting both requirements.
Pennsylvania-based S&T Bancorp said it had slashed its dividend from 31 cents to 15 cents in order to save capital and repay the $108.6 million it received under the TARP program.
"Execution of this quarter's dividend payments will enable the bank to retain $18 million in additional capital on an annual basis," said Todd Brice, the bank's chief executive, in a statement. "It will also contribute to ultimately repaying the money S&T acquired through the government's Capital Purchase Program.
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