Treasury to Auction Off Stakes in 15 Banks That Received TARP Aid

By Tom Barkley

WASHINGTON--The Treasury Department Wednesday started the auction of shares it holds in 15 banks, as it continues to wind down programs dating to the 2008 financial crisis.

The Treasury is auctioning its preferred shares and subordinated debt in the following banks, which received Troubled Asset Relief Program funds:

--Alaska Pacific Bancshares Inc. (AKPB) of Juneau, Alaska

--Bank of Commerce (BONC) of Charlotte, N.C.

--Carolina Trust Bank (CART) of Lincolnton, N.C.

--CBB Bancorp of Cartersville, Ga.

--Clover Community Bankshares Inc. of Clover, S.C.

--Community Bancshares of Mississippi Inc., of Brandon, Miss.

--Community Business Bank (CBBC) of West Sacramento, Calif.

--Corning Savings and Loan Association of Corning, Ark.

--Country Bank Shares Inc. of Milford, Neb.

--FFW Corp. (FFWC) of Wabash, Ind.

--Hometown Bancshares Inc. of Corbin, Ky.

--KS Bancorp Inc. (KSBI) 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.

In total, TARP's bank programs have yielded nearly a $22 billion profit on a $245 billion initial investment.

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.

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. (AIG).

Write to Tom Barkley at [e-mail].