Intervest Bancshares (IBCA) in New York City bid successfully for some of its own shares in a recent Treasury Department auction.
The Treasury accepted Intervest's bid of $6 million for 6,250 preferred shares that the $1.6 billion-asset company issued the agency through the Troubled Asset Relief Program.
Intervest also will have to pay the Treasury $1.2 million in dividends on the shares, which account for 25% of the preferred stock the company issued to the Treasury. Other bidders won the remaining shares in the auction, which ended Thursday. The Treasury did not provide the names of the other bidders.
The Treasury expects proceeds of $24.3 million from the auction. It still holds a warrant to purchase roughly 692,000 shares of Intervest's common stock for $5.42 per share.
In March the Office of the Comptroller of the Currency lifted an order that had prevented Intervest from paying dividends, making interest payments and incurring new debt.