Dozens of community banks with capital from the Troubled Asset Relief Program are bracing for higher costs tied to continued participation.

Banks that hit their fifth anniversaries in the 2008 program face a mandatory hike in dividend payments on the preferred stock, which are scheduled to jump to 9% from 5%. At some banks, higher dividends would kick in during the fourth quarter.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.