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5/5/2020 Treasury Department Announces $56.0 Million in Proceeds from Pricing of Auctions of Preferred Stock and Subordinated Debt of Six Fina… U.S. DEPARTMENT OF THE TREASURY Press Center Treasury Department Announces $56.0 Million in Proceeds from Pricing of Auctions of Preferred Stock and Subordinated Debt of Six Financial Institutions 6/14/2013 Auctions Part of Treasury’s Continued Efforts to Wind Down TARP’s Bank Programs Proceeds Deliver Additional Profit for Taxpayers on TARP’s Bank Programs WASHINGTON – As part of the strategy it outlined for winding down its remaining Troubled Asset Relief Program (TARP) bank investments, the U.S. Department of the Treasury announced that it priced auctions of preferred stock and subordinated debt (the “CPP Securities”) in the following six institutions at the following prices: Issuer and Security Farmers & Merchants Financial Corporation, Argonia, KS Fixed Rate Cumulative Perpetual Preferred Stock, Series A Fixed Rate Cumulative Perpetual Preferred Stock, Series B Price per share* or per $1,000 aggregate principal amount Number of shares or aggregate principal amount to be sold Aggregate Gross Proceeds $962.50 442 $425,425.00 $1,007.50 22 $22,165.00 $447,590.00 First Western Financial, Inc., Denver, CO Fixed Rate Cumulative Perpetual Preferred Stock, Series A Fixed Rate Cumulative Perpetual Preferred Stock, Series C $902.50 8,559 $7,724,497.50 $842.50 3,881 $3,269,742.50 $10,994,240.00 Intervest Bancshares Corporation, New York, NY Fixed Rate Cumulative Perpetual Preferred Stock, Series A Pathway Bancorp, Cairo, NE Fixed Rate Cumulative Perpetual Preferred Stock, Series A Fixed Rate Cumulative Perpetual Preferred Stock, Series B $970.00 25,000 $24,250,000.00 $1,167.01 3,727 $4,349,446.27 $1,352.50 186 $251,565.00 $4,601,011.27 Security State Bank Holding Company, Fargo, ND 7.7% Senior Subordinated Securities due 2039 13.8% Senior Subordinated Securities due 2039 Worthington Financial Holdings, Inc., Huntsville, AL Fixed Rate Cumulative Perpetual Preferred Stock, Series A Fixed Rate Cumulative Perpetual Preferred Stock, Series B $1,166.01 $1,352.50 $10,750,000.00 $538,000.00 $12,534,607.50 $727,645.00 $13,262,252.50 $861.71 2,720 $2,343,851.20 $852.50 136 $115,940.00 $2,459,791.20 *Reflects a liquidation preference of $1,000 per share. The aggregate gross proceeds to Treasury from the auctions are expected to be approximately $56.0 million. “Through repayments and these auctions we have now collected nearly $26 billion more than what was invested in the nation's banks,” said Timothy G. Massad, Assistant Secretary for Financial Stability. “TARP helped prevent our economy from falling into a second Great Depression, and over the next several months we will continue to wind down the remaining investments in a way that helps support community banks and protects taxpayer interests.” TARP’s bank programs have already earned a significant profit for taxpayers. Including the expected proceeds from the transactions announced today, Treasury has now recovered nearly $271 billion from TARP’s bank programs through repayments, dividends, interest, and other income – compared to the $245 billion initially invested. Approximately $2 billion of the repayments were refinanced under the Small Business Lending Fund (SBLF). Congress created the SBLF outside of TARP and required Treasury to let CPP institutions repay TARP funds by borrowing under that program. Each additional dollar recovered from TARP’s bank programs is an additional dollar of profit for taxpayers. https://www.treasury.gov/press-center/press-releases/Pages/jl1984.aspx 1/2 5/5/2020 Treasury Department Announces $56.0 Million in Proceeds from Pricing of Auctions of Preferred Stock and Subordinated Debt of Six Fina… The vast majority of the nearly $271 billion in funds recovered to date are from repayments at par, as well as dividends, interest, and sales of warrants. Proceeds from CPP preferred stock auctions comprise less than one percent (approximately $3 billion) of that overall total (nearly $271 billion). These auctions are part of the strategy that Treasury outlined in May 2012 for winding down its remaining TARP bank investments in a way that protects taxpayer interests and preserves the strength of our nation’s community banks. Treasury indicated that it intends to use a combination of repayments, restructurings, and sales to manage and recover those remaining investments. The closings for the auctions are expected to occur on or about June 24, 2013, subject to customary closing conditions. The offerings were priced through modified Dutch auctions. The CPP Securities sold in the auction have not been and will not be registered under the Securities Act of 1933, as amended (the Act), and may not be offered or sold in the United States or to, or for the benefit of, U.S. persons absent registration under, or an applicable exemption from, the registration requirements of the Act and applicable state securities law. The CPP Securities were offered only to (1) domestic “qualified institutional buyers” as defined in Rule 144A under the Act, (2) certain domestic institutional “accredited investors” as defined in Rule 501(a) under the Act that have total assets of not less than $25,000,000 and (3) in certain cases, certain directors and executive officers of the respective issuers of the CPP Securities. This press release does not constitute an offer to sell or the solicitation of an offer to buy the CPP Securities, and shall not constitute an offer, solicitation or sale in any jurisdiction in which, or to any persons to whom, such offering, solicitation or sale would be unlawful. For more details on Treasury’s lifetime cost estimates for TARP programs, please visit Treasury’s Monthly 105(a) Report to Congress on TARP at this link . ### https://www.treasury.gov/press-center/press-releases/Pages/jl1984.aspx 2/2
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