WASHINGTON--The Treasury Department said Thursday it will
receive $204 million from the sale of the government's stakes in
seven financial institutions that received government aid during
the financial crisis.
The department said the expected overall proceeds will be 11%
above the minimum prices set for the auction.
Treasury officials continue to seek to wind down the
government's stake in hundreds of banks as the $700 billion
Troubled Asset Relief Program approaches its fourth year this fall.
The Treasury invested $245 billion in banks and has recovered $264
billion through repayments, dividends, interest and other income,
the department said. The federal government still owns stakes in
335 banks, mostly small ones that have been unable to fully pay
back the government.
"We again saw strong demand in these auctions, which brought in
new private capital to help community banks replace temporary
government support," said Timothy Massad, Treasury's assistant
secretary for financial stability, in a statement.
In the coming weeks, the Treasury said it intends to announce
additional auctions of its remaining bank holdings, with the next
set of auctions to be conducted in late July. Beginning in the
fall, the Treasury said it expects to start the first in a series
of pooled auctions of investments made in banks through TARP.
The seven financial institutions are Fidelity Southern Corp.
(LION) of Atlanta; Firstbank Corp. (FBMI) of Alma, Mich.; First
Citizens Banc Corp. (FCZA) of Sandusky, Ohio; MetroCorp Bancshares
Inc. (MCBI) of Houston; Peoples Bancorp of North Carolina Inc.
(PEBK) of Newton, N.C.; Pulaski Financial Corp. (PULB) of St.
Louis; and Southern First Bancshares Inc. (SFST) of Greenville,
S.C.
The closing is expected to occur around July 3, the Treasury
said.
Write to Sarah Portlock at sarah.portlock@dowjones.com