Northern Trust moves closer to paying back TARP funds

Northern Trust (Ticker:NTRS) announced today that is raising capital to pay back the Preferred Stock issued to the U.S. Treasury as a part of the TARP Capital Purchase Program. Northern is trying to raise $750 million of common equity and $500 million in new debt.

Northern's CEO Frederick Waddell said "These steps will position Northern Trust to redeem Capital Purchase Program funds when permitted by regulators, while also strengthening our ability to pursue compelling growth opportunities."

Northern received $1.576 billion last Nov. 14th in the second wave of TARP Preferred Stock investments.

Rep. Frank wants U.S. to accept TARP repayments

U.S. Rep. Barney Franks says that the government should welcome banks who want to pay back TARP funds. He told Reuters that "To the extent that we have people pay it back, we should welcome that. It goes into the Treasury."

He also gave an interview to the Financial Times saying that the stronger banks should be allowed to pay back TARP funds. He knows that "some people are taller than other people. Of course there are different levels of strength between the banks.” He dismissed opposing arguments that by allowing the stronger banks to return TARP funds they will have a competitive advantage and therefore banks shouldn't be allowed to return funds until the banking system is much stronger.

Four more banks complete TARP share repurchase

Four more banks have repaid TARP funds this past week. To date, a total of eleven banks have repaid TARP funds totaling $1.03654 billion plus accrued dividends.

A full list of TARP recipients along with who has paid back TARP funds is available on a new government website called FinancialStablity.gov. The latest TARP Transactions Report is available under the Reports and Filings section.

TARP Paybacks this week...

TCF Financial (Ticker: TCB) fully repaid TARP funds on April 22nd. They bought back the preferred shares issued to the Treasury Department for $361.172 million plus accrued dividends of $3.4 million. They originally received the funds on Nov. 14th.

FirstMerit (Ticker: FMER) fully repaid TARP funds on April 22nd. They bought back the preferred shares issued to the Treasury Department for $125 million plus accrued dividends of approximately $1.16 million. They originally received the funds on Jan. 9th.

Independent Bank (Ticker: INDB) fully repaid TARP funds on April 22nd. They bought back the preferred shares issued to the Treasury Department for $78.158 million plus accrued dividends of approximately $727,000. They originally received the funds on Jan. 9th.

First ULB fully repaid TARP funds on April 22nd. They bought back the preferred shares issued to the Treasury Department for $4.9 million plus accrued dividends. They originally received the funds on Jan. 23rd.

TCF receives approval to return TARP funds

TCF Financial Corp. (Ticker:TCB) announced yesterday that it has received approval from the U.S. Treasury to repurchase all of its preferred shares issued in connection with the TARP at a total redemption price of $361.172 million plus a final pro rata accrued dividend.

When this transaction closes, TCF will become the biggest bank yet to redeem TARP shares.

FirstMerit Files Notice to Return TARP Funds

FirstMerit Corp. (Ticker: FMER) announced on April 16th that it has filed notice with the U.S. Dept. of the Treasury to redeem all the preferred shares issued as a part of the TARP at a total redemption price of $125 million plus accrued dividends. FirstMerit originally received the investment on Jan. 9th. FirstMerit anticipates closing the transaction on or about April 22nd.

Shore Bancshares Completes TARP Share Repurchase

Shore Bancshares (Ticker: SHBI) announced that they fully repaid TARP funds on April 15th. They bought back the preferred shares issued to the Treasury Department for $25 million plus accrued dividends of $208,333.33. They originally received the funds on Jan. 9th.

To date, a total of seven banks have repaid TARP funds totaling $467.31 million plus accrued dividends.

A full list of TARP recipients along with who has paid back TARP funds is available on a new government website called FinancialStablity.gov. The latest TARP Transactions Report is available under the Reports and Filings section.

Goldman Sachs raises $5 Billion

Goldman Sachs (Ticker: GS) announced this morning that it has priced the stock offering announced last night of 40,650,407 shares at $123.00 per share. In addition, Goldman has an option to purchase up to an additional 6,097,561 shares of common stock.

If the option gets fully exercised that would give them $5.75 billion that can be used towards redeeming that TARP shares issued to the Treasury Dept.

First Niagara Announces $300 Million Stock Offering

First Niagara Financial Group, Inc. (Ticker: FNFG) announced today that it plans to sell approximately $300 million of common stock in a public offering.

In a statement, First Niagara said they want to use part of the proceeds "to facilitate (in consultation with the Office of Thrift Supervision) repayment of the $184 million in preferred stock issued to the U.S. Treasury Department pursuant to the Capital Purchase Program and the related warrant for common stock"

Goldman Sachs also announced a stock offering today to raise funds to pay back TARP funds.

Centra Financial Holdings completes TARP share repurchase

Centra Financial Holdings announced in an 8-K filing that they returned TARP funds on March 31st. They bought back the preferred shares issued to the Treasury Department for $15 million plus accrued dividends of $95,833.33. They originally received the funds on Jan. 16th.

To date, a total of six banks have repaid TARP funds totaling $442.31 million plus accrued dividends.

A full list of TARP recipients along with who has paid back TARP funds is available on a new government website called FinancialStablity.gov. The latest TARP Transactions Report is available under the Reports and Filings section.

Goldman Announces $5 Billion Stock Offering

Goldman Sachs (Ticker: GS) announced today that it has commenced a $5 billion stock offering. Goldman is going to underwrite the offering themselves.

They want to use the money raised from the offering to pay back the $10 billion in TARP funds it received in Oct. 2008.

From the press release:

"After the completion of the stress assessment, if permitted by our supervisors and if supported by the results of the stress assessment, Goldman Sachs would like to use the capital raised plus additional resources to redeem all of the TARP capital. "

Goldman Sachs also announced 1st Quarter 2009 earnings.

Somerset Hills Bank files notice to return TARP funds

Somerset Hills Bancorp (Ticker: SOMH) based in Bernardsville, NJ, said on April 2 it filed a notice with the Treasury Dept. and the Federal Reserve Bank of New York to pay back $7.414 million it received in TARP funds. The bank also anticipates that it will offer to buyback the warrant issued to the Treasury in connection to the TARP preferred shares.

Blankfein speaks to NPR about returning TARP funds

Goldman Sachs CEO Lloyd Blankfein was interviewed today on NPR's All Things Considered. He spoke about when Goldman will return TARP funds and about executive pay in the financial sector.

Regarding returning TARP funds,

"I will tell you precisely when Goldman Sachs gives its money back: As soon as we are able to, while still being able to perform our functions in the capital markets systems subject to the approval of our regulators."

Blankfein says that because of legal restrictions, he can't discuss the approval process. But generically speaking, he says the TARP money was never meant to be "permanent capital."

"It wasn't the option of the bank to hold on to it, but rather the obligation of the bank that as soon as it was able to do it, to return the money while still performing that important purpose of intermediating and lending," Blankfein says. "Then the obligation was to return it immediately."

Read the NPR story here.

Hear the entire interview here.

Sun Bancorp completes TARP share repurchase

Sun Bancorp (Ticker: SNBC) today became the fifth bank to return TARP funds. They announced that they have bought back the preferred shares issued to the Treasury Department for $89.31 million plus accrued dividends of $657,000. They originally received the funds on Jan. 9th.

To date, a total of five banks have repaid TARP funds totaling $427.31 million plus accrued dividends. Three more have publicly announced that they have filed notice with the Treasury Department to redeem shares.

Goldman considering share sale to pay back TARP funds

The Daily Telegraph reported on Saturday that Goldman Sachs is considering a multi-billion dollar share sale to fund the pay back of TARP shares. The newpaper says that Goldman is expected to make an announcement that it will submit a formal application to the Treasury department on April 14th when it reports first quarter results.

Goldman Considers Share Sale

Bank of America to Pay $713 Million in TARP Preferred Dividends

The board of directors of Bank of America (Ticker: BAC) today authorized approximately $713 million in dividend payments to the U.S. government under the Troubled Asset Relief Program (TARP). The payment will be made on May 15, 2009.

Approximately $188 million relates to the government's $15 billion investment in Bank of America made under the Capital Purchase Program of TARP. Approximately $125 million relates to the government's $10 billion investment in Merrill Lynch made under the Capital Purchase Program of TARP. Finally, approximately $400 million relates to the government's $20 billion investment in Bank of America on January 16, 2009 under TARP.

Read the press release here.

Sun Bancorp to return TARP funds on April 8th

Sun Bancorp announced today that they have received approval to repurchase preferred shares issued to the Treasury department in connection with the TARP. The company is scheduled to complete the repurchase of $89.31 million in shares on April 8th.

Why banks are returning TARP funds

The Associated Press has a nice article with a Q&A about banks returning TARP money.

Read Meltdown 101: Why some banks returned rescue money.

Four Banks file to return TARP funds

Four banks have filed notice with the Treasury department to return TARP funds. This is in addition to the four banks who announced yesterday that they have already returned TARP funds.

Participants in the Capital Purchase Program are required to provide notice of redemption to the Treasury Department at least 30 days prior to the redemption date. The Treasury must consult with the firm's primary federal regulator before approving repayment.

The four banks who have filed notice are as follows:

1. Sun Bancorp (Ticker: SNBC) announced on March 11th that it has filed notice to redeem the $89.31 million it recieved on Jan. 9, 2009.

2. TCF Financial (Ticker: TCB) announced on March 2nd that is has filed notice to redeem the $361.172 million it received on Nov. 14th, 2008.

3. Shore Bancshares (Ticker: SHBI) announced on March 26th that it has filed notice to redeem the $25 million it received on Jan. 9, 2009.

4. Centra Financial Holdings announced on March 25th that it has filed notice to redeem the $15 million of TARP funds it has recieved on Jan 16th, 2009.