Four of the five Oklahoma banks that accepted federal money doled out under the Troubled Assets Relief Program (TARP) in the wake of the 2008 financial crisis have repaid those funds.
The lone exception, SpiritBank of Bristow, has proposed repaying the $30 million investment by the U.S. Treasury “through a different payment structure,” said Joyce Madewell, SpiritBank executive vice president of marketing.
However, the Treasury plans to liquidate all of its Capital Purchase Program investments as soon as possible, Madewell said, “which would preclude the payment of this over time as proposed.”
A regulator directed SpiritBank's parent company to defer dividend payments on the preferred stock held by the U.S. Treasury under the Capital Purchase Program, Madewell said.
SpiritBank, which has written off some bad loans and booked some losses, agreed earlier this year to reduce the bank's size to boost its capital position and increase the amount of money set aside for problem loans and assets.
Dudley Gilbert, Oklahoma Banking Department deputy commissioner, said SpiritBank “is progressing along with the terms of the agreement.”
Serving its purpose
This month, Southwest Bancorp, the parent of Stillwater National Bank, repaid the $70 million it owed the Treasury.
Southwest Bancorp CEO Rick Green said the federal money imposed some burdens on the company but allowed the bank to maintain its strong capital position while coping with liquidity issues and loans that went sour.
“We believe that the purpose for which it was intended worked very favorably for us,” Green said of TARP.
“We were always able to maintain a very significant amount of capital — well over the amount required to be viewed as well capitalized — even though we had experienced some pretty significant hurdles, particularly as it relates to commercial real estate.”
Congress initially allocated up to $700 billion to fund the TARP program, but only about $416 billion was disbursed, with most of that going to bank support programs.
A U.S. Treasury report issued this week said $359 billion of that total has been returned in repayments, dividends, revenue from the sale of stock warrants and other income.
The Treasury Department has recovered more than it invested in bank support programs through repayments, dividends, interest and other income.
The agency estimates the bank program investments will produce a $20 billion profit to taxpayers.
Nationally, there were 309 banks with outstanding investments in the Capital Purchase Program as of July 31. Texas, for instance, still had 11 banks in the program, led by the $176 million investment by Laredo-based International Bancshares Corp. that operates numerous IBC Bank branches in Oklahoma.
Three other Oklahoma banks, which each took comparatively small TARP investments in 2009, repaid the funds last year. Grand Capital Corp., of Tulsa, parent of Grand Bank, received $4 million; Regent Capital Corp., of Nowata, received $2.7 million; and AmeriBank Holding Co., of Collinsville, received $2.5 million.