Clayton-based First Banks skips 14th TARP interest payment
Dec 19, 2012 (Menafn - St. Louis Post-Dispatch - McClatchy-Tribune Information Services via COMTEX) --Clayton-based First Banks deferred making a dividend payment on its Troubled Asset Relief Program investment in November for the 14th time.
First Banks, the holding company for First Bank, owes the Treasury more than 56.3 million in unpaid dividends on a 295 million investment the Treasury made in the bank in 2008. Banks are allowed to defer making payments on the dividends, with interest accruing.
The Treasury provided capital to 707 financial institutions through the capital purchase program in the midst of the 2008-2009 financial crisis to stabilize the financial system. The Treasury invested 245 billion in banks and has so far recovered 268 billion in repayments, dividends and other income. The Treasury said Tuesday that it plans to sell its stake in some of the remaining 218 banks that have not repaid TARP funds.
According to an analysis by SNL Financial of TARP dividend payments outstanding, 131 banks and thrifts did not make Nov. 15 TARP dividend payments that were due, down from 136 in the previous quarter. First Banks leads the country in the amount of non-current interest owed through the Treasury's capital purchase program.
Including First Banks, four Missouri banks are among the 20 financial institutions that have the highest amount of non-current dividends outstanding.
Kansas City-based bank holding company Dickinson Financial Corp. II ranks third in the amount of non-current interest owed through TARP's capital purchase program and has missed 14 interest payments. Dickinson owes more than 27.8 million in unpaid dividends on a 146 million TARP investment.
Clayton-based Centrue Financial Corp., which also has missed 14 interest payments. owes 5.7 million in unpaid dividends on a 33 million TARP investment. Frontenac-based Reliance Bancshares owes 4.4 million in unpaid dividends on a 40 million investment, and has missed eight interest payments.
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