First Southern Bank of Boca Raton exits TARP after buying back preferred shares

First Southern completes buyback of TARP shares

BOCA RATON, Fla. — First Southern Bancorp said Friday that it bought back all the preferred stock it issued to the Treasury Department in exchange for federal bailout aid and it has exited the Troubled Asset Relief Program, or TARP.

The privately held bank paid the government $11.5 million, including a final dividend payment of about $51,000. The bank’s total dividend payments under the program were $818,000.

The five-branch First Southern Bank’s parent company was one of hundreds of U.S. banks that participated in TARP and received cash investments from the Treasury Department in exchange for preferred stock at the height of the financial crisis.

The government committed $700 billion of taxpayer funds to help banks under the so-called Troubled Asset Relief Program, or TARP. Hundreds of U.S. banks participated and received cash investments from the Treasury Department in exchange for preferred stock.

Earlier this month, Treasury said the total funds repaid had reached $194 billion, more than the $190 million still outstanding. Another $23 billion was paid to Treasury through dividends.

The program officially ends in October.