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http://bailoutsleuth.com/2008/11/more-banks-more-money/

By Chris Carey on November 20, 2008 3:50 PM
Ten more banks have announced their participation in the Treasury Department's $250 billion capital purchase program, pushing the total number of institutions that have been selected to receive taxpayer money beyond 70.

The total allocation for the 10 new banks on the list was $1.4 billion.

M&T Bank Corp., a Buffalo, N.Y.-based bank with operations in New York, New Jersey, Pennsylvania, Virginia and several other states, was approved to sell $600 million in preferred stock to the government.

Susquehanna Bancshares Inc., of Lititz, Pa., will get $300 million in capital through the Treasury Department program.

Susquehanna concluded that participating in the program would benefit customers, shareholders and the communities that the company serves, said William J. Reuter, chairman and chief executive.

"Susquehanna Bank has continued to see strong loan growth throughout this year, and we are fortunate to be well-capitalized, with sufficient liquidity to meet customers' needs,'' Reuter said in a prepared statement. "The additional capital we receive through this program will broaden our ability to meet ongoing loan requests from our customers. In addition, it positions us to be able to make strategic investments for the future growth of our regional banking operations.''

Boston Private Financial Holdings Inc. will get $150 million in capital through the program. That comes on top of the $173 million the banking company raised in July from private investors, including the Carlyle Group, a large private equity fund.

CVB Financial Corp., of Ontario, Calif., said it was approved for $130 million in investment by the Treasury Department. Sandy Spring Bancorp, based in Olney, Md., will get $83 million.

In return for the money, the banks are issuing the Treasury Department preferred stock that pays dividends of 5 percent a year for the first five years and 9 percent thereafter. The funding deals also include warrants to buy common stock, which could provide a return to taxpayers of the shares increase in value over time.

The $250 billion being dispensed to the banks is part of the $700 billion financial-services industry bailout plan approved by Congress last month.

Wilshire Bancorp of Los Angeles said it plans to sell $62 million in preferred shares to the government. LNB Bancorp Inc., based in Lorain, Ohio, is getting $25.2 million, and Wainwright Bank & Trust Co. is getting $22 million

Indiana Community Bancorp, which has headquarters in Columbus, Ind., was approved for $21.5 million in public money. HopFed Bancorp Inc., of Hopkinsville, Ky., got $18.4 million.

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