In winding down programs dating to the 2008 financial crisis, the Treasury Department is auctioning its preferred shares in Brandon-based Community Bank of Mississippi Inc. and 14 other banks that received Troubled Asset Relief Program funds.
Community Bank of Mississippi, a subsidiary of Community Bancshares of Mississippi, received $52 million TARP money on Sept. 11, 2009. In exchange, it granted the Treasury Department an equivalent share of preferred stock.
The state-chartered bank has 15 offices, 13 in Mississippi and two in Alabama, and had assets of about $649 million at the end of the second quarter.
Other banks included in Treasury’s selling of preferred shares and subordinated debt are:
–Alaska Pacific Bancshares Inc. of Juneau, Alaska.
–Bank of Commerce of Charlotte, N.C.
–Carolina Trust Bank ) of Lincolnton, N.C.
–CBB Bancorp of Cartersville, Ga.
–Clover Community Bankshares Inc. of Clover, S.C.
–Community Business Bank of West Sacramento, Calif.
–Corning Savings and Loan Association of Corning, Ark.
–Country Bank Shares Inc. of Milford, Neb.
–FFW Corp. (of Wabash, Ind.
–Hometown Bancshares Inc. of Corbin, Ky.
–KS Bancorp Inc. of Smithfield, N.C.
–Layton Park Financial Group Inc. of West Allis, Wis.
–Parke Bancorp Inc. of Sewell, N.J.
–TriSummit Bank of Kingsport, Tenn.
The auctions begin at 9 a.m. Eastern time Friday and closes at 6 p.m. Monday.
In total, TARP’s bank programs have yielded nearly a $22 billion profit on a $245 billion initial investment, DowJones.com reports.
TARP, which also included rescues for the housing, auto and insurance sectors, will likely end up costing taxpayers. But the cost is projected to be far less than originally feared, DowJones.com notes.
The Congressional Budget Office has estimated the final price tag will be $24 billion, down from an estimate of $32 billion made in the spring. The lower cost was due largely to an increase in market value of the government’s investment in insurer American International Group Inc.