Ten Banks Get TARP Money; Seven Get Second Helpings

The big banks may be headed for the exit, but smaller banks continue to seek government support through the Troubled Asset Relief Program.

The Treasury Department said in its latest transaction report that it invested a little more than $70 million in 10 banks. The list included seven financial institutions that were receiving their second round of TARP aid.

First Community Financial Partners Inc., of Joliet, Ill., got the biggest chunk of money -- $22 million -- in exchange for preferred stock and warrants for additional shares, which the Treasury exercised immediately.

Wachusett Financial Services Inc., of Clinton, Mass., got $12 million in taxpayer capital, while First Western Financial Inc., of Denver, got $11.9 million. First Western had previously received $8.6 million in TARP money.

Meridian Bank, in Devon, Pa., picked up $6.33 million, bringing the government's total investment in that institution to $12.5 million.  It had received $6.2 million in TARP money in February.

GrandSouth Bancorporation, of Greenville, S.C., got $6.2 million in the latest round of investment, on top of $9 million it received in January.

1^st Enterprise Bank, which has headquarters in Los Angeles, got $6 million in TARP funds, lifting the Treasury's total investment to $10.4 million. It previously received $4.4 million in January.

First Resource Bank, of Exton, Pa., picked up an additional $2.42 million. It got $2.6 million in January. First Business Bank, of San Diego, was another double dipper. It received $2.03 million, on top of the $2.2 million it collected in April.

Victory Bancorp Inc., of Limerick, Pa., got $1.5 million in TARP money last week. The Treasury had invested $541,000 in that bank in March.  

Nationwide Bankshares Inc., based in West Point, Neb., received $2 million from the government. It issued subordinated debentures to the Treasury, in lieu of stock.

The preferred stock that most banks have issued in return for government aid pays a dividend of 5 percent annually for the first five years, and 9 percent annually thereafter.