CORRECT: Treasury Doles Out More TARP Money; Upgrades Countrywide Funding Cap

The U.S. Treasury Department has doled out an additional $39.1 million in funds to seven new banks, including Berkshire Bancorp, Inc. (BERK), First Financial Bancshares Inc., Enterprise Financial Services Corp. (EFSC) and River Valley Bancorp (RIVR).

Other banks that recently received Troubled Asset Relief Fund capital injections from Treasury include SouthFirst Bancshares Inc. (SZBI), Virginia Company Bank (VGNA) and First Vernon Bancshares Inc.

In addition, Treasury said it would increase by $3.3 billion the maximum amount it will provide to Countrywide Home Loans Servicing. Initially, Treasury reported a $1.9 billion cap in incentive payments to Countrywide. But the cap can be adjusted.

The names of the banks were announced in a transaction report Treasury made public Tuesday.

The government delivered the funds to the banks on June 12 in exchange for shares in the companies, all part of a broader federal effort to inject capital into banks around the country and revive lending.

The report shows that Treasury has so far spent a total of $197.6 billion under the bank capital program which was launched in October.

The specific amount of aid Countrywide will receive is contingent on Countrywide helping borrowers modify and refinance their mortgages as required under the administration's new home loan modification program. The goal is to provide aid to servicers who agree to rework loans for troubled borrowers or borrowers who owe more on their mortgages than their homes are worth.

New so-called incentive payment caps were also announced for several other servicers, including for Bank of America Corp. (BAC), which received a $5.5 million boost in its cap, according to the report. Initially, Treasury reported a cap of $798.9 million for Bank of America.

-By Maya Jackson Randall, Dow Jones Newswires; 202-862-9255, [e-mail]