Two more banks redeemed stock given to the government in exchange for bailout assistance, while an insurance company declared it would soon follow suit.
California-based Westamerica Bancorporation said it had completed the repayment of $83.7 million it received under the Troubled Asset Relief Program. It paid off half of the debt in September. Like all companies received bailout assistance, it also paid accrued dividends.
Union Bankshares Corp., based in Virginia, said it too had redeemed stock shared it gave the government in exchange for $59 million in aid. The company raised money in a public offering earlier this year in anticipation of exiting the bailout program.
Lincoln National Corp., a large insurer based in Pennsylvania that became a bank holding company in order to become eligible for TARP aid, said it expected Treasury approval to repay its $950 million in bailout funding as early as 2010.
"When we get to the point that we want to repay, we are pretty confident the conversations will go well," CEO Dennis Glass told investors Tuesday. He said that repayment could begin next year, allowing the company to once again pay a dividend to investors.
Banks and insurers have been eager to escape the TARP program whenever possible. Although the initiative has been a source of cheap funding, it has also come with significant restrictions on executive pay and the payment of dividends. So far, of the $204 billion invested in the program, $70.8 billion has been returned.
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