The Treasury Department plans to auction nearly $118 million of shares in six lenders as it continues to wind down the Troubled Asset Relief Program.
The Treasury plans to sell all of its remaining preferred stock in the six banks at an auction that was set to begin Thursday and end Sept. 17, it announced this week. The Treasury retains a stake in 119 of the more than 700 banks that participated in Tarp, it said.
The largest holdings up for bid are stakes of $40 million in Reliance Bancshares in Frontenac, Md., $32.7 million in Centrue Financial in Ottawa, Ill., and $23.4 million in Severn Bancorp in Annapolis, Md.
The Treasury will also sell $11.7 million of preferred shares of First Banks in Clayton, Mo. The $6.2 billion-asset company received $295 million through the program in December 2008, and the Treasury has been gradually reducing its stake this year.
The agency will also auction an $8.9 million stake in RCB Financial Corp. in Rome, Ga., and a $1.5 million stake in DeSoto County Bank in Lake Horn, Miss.
The Treasury said that it hoped to auction its stake in two-thirds of the banks that remain in the program this year.