Another 18 lenders that took federal aid missed dividend payments in August on preferred shares they issued to the government as part of the Troubled Asset Relief Program, according to SNL Financial.
Fifteen companies missed the first payment deadline, on May 15, and 18 skipped the Aug. 17 deadline for the 5% quarterly payouts they are required to dole out to the Treasury Department, SNL said in a report issued late Tuesday. The next deadline is Nov. 15.
A broad swath of companies from all over the country are skipping payments, though most are regional or community lenders with $500 million of assets or less. The largest is $20 billion-asset CIT Group Inc., a New York company that accepted $2.33 billion from the Treasury and missed the most recent deadline. The smallest is Saigon National Bank, a $67.6 million-asset lender in Westminster, Calif., that missed both dividends on its $1.5 million in federal aid, according to SNL.