US makes $62.4M on sale of stock in 4 small banks
WASHINGTON (AP) — The government says it made $62.4 million on the sale of its stock in four small banks that were bailed out during the 2008 financial crisis.
The Treasury Department announced Friday the results of its latest auction of its preferred stock in small banks. The government sold its shares for $5.1 million less than its original investment in the four banks of $67.5 million. But overall the Treasury says the investment was profitable after counting $12.1 million in dividends it received from the banks, for total income of $74.5 million.
The profits will help offset losses in the broader financial bailout, known as the Troubled Asset Relief Program. The government loaned $417 billion to financial institutions and automakers under TARP. It has recovered $351 billion so far.
About $245 billion went to 707 banks. Treasury says it's recovered $266 billion from its TARP bank investments from repaid loans, dividends and interest.
The four banks and the proceeds reported from the sale are BNC Bancorp, based in High Point, N.C., $28.4 million; First Community Corp., Lexington, S.C., $11 million; First National Corp., Strasburg, Va., $12.7 million; and Mackinac Financial Corp., Manistique, Mich., $10.4 million.
Treasury said it didn't proceed with the sale of its preferred stock in Guaranty Federal Bancshares Inc. of Springfield, Mo., because it didn't receive enough bids above the minimum price for the shares.