Treasury Department to auction SpiritBank preferred stock to repay TARP investment
BancFirst plans to bid on SpiritBank securities that the Bristow bank offered in exchange for $30 million in federal funds issued as part of the Troubled Asset Relief Program in 2009.
The U.S. Treasury Department plans to sell preferred stock from Bristow-based SpiritBank at an upcoming auction to help repay $30 million in taxpayer funds the bank took as part of the Troubled Asset Relief Program in 2009.
SpiritBank was one of 707 financial institutions that the Treasury Department invested in as part of the TARP's Capital Purchase Program to help stabilize the nation's turbulent financial system.
The Bristow-based bank, controlled by the Kelly family, gave the Treasury preferred stock in exchange for $30 million in TARP funds.
Four other Oklahoma banks that accepted TARP investments have repaid the money, but SpiritBank has yet to do so.
The Treasury Department began winding down those investments last year by auctioning off its investments to the highest bidders.
SpiritBank is on a list of 53 financial institutions with Capital Purchase Plan investments that Treasury plans to auction off this year.
A firm auction date has yet to be announced.
SNL Financial last week reported that the Treasury Department is starting to realize heavier losses as it continues to auction its CPP investments in banks.
In the most recent auction, the Treasury sold $295.8 million in CPP securities, taking a loss of $104.5 million before fees, a hit amounting to more than a third of the principal amount auctioned, SNL Financial reported.
Oklahoma City-based BancFirst officials said it plans to bid on SpiritBank's preferred stock at the upcoming auction, pending approval from bank regulators.