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UNITED STATES DEPARTMENT OF THE TREASURY

OFFICE OF FINANCIAL STABILITY

Warrant Disposition Report
Update June 30, 2012

Troubled Asset Relief Program
Office of Financial Stability

The United States Department of the Treasury (Treasury) is pleased to present this supplement to the Warrant
Disposition Report dated December 31, 2010, with information about the 12 warrant repurchases that
Treasury’s Office of Financial Stability (OFS) conducted under the Troubled Asset Relief Program (TARP) in
the six months ending June 30, 2012. 1

Executive Summary
The Emergency Economic Stabilization Act of 2008 (EESA) requires that in most circumstances Treasury
receive warrants in connection with the purchase of troubled assets.
Using the authority granted by EESA, Treasury invested in more than 700 banks of all sizes. A total of $245
billion was invested across five distinct banking programs, two of which are the Capital Purchase Program
(CPP) and the Targeted Investment Program (TIP). As of June 30, 2012, Treasury has recovered $264 billion
from TARP’s bank programs through repayments, dividends, interest, and other income.
Treasury’s warrant sales provide additional returns beyond dividend payments from Treasury’s preferred stock
investments. Treasury’s successful warrant dispositions have significantly benefited taxpayers. During the six
months ending June 30, 2012, Treasury received more than $56.9 million in gross proceeds from the disposition
of 12 warrant positions through repurchases. 2
Since the program’s inception, Treasury has received more than $9.2 billion in gross proceeds from the
disposition of warrants associated with 137 CPP investments and two TIP investments, 3 consisting of (i) $3.7
billion from issuer repurchases at agreed upon fair market values and (ii) $5.4 billion from auctions. For the
137 fully repaid CPP investments representing $226.0 billion in capital, Treasury has received an absolute
return of 8.8 percent from dividends and capital appreciation on Citigroup common stock and an added 4.1
percent return from the sale of the warrants for a total absolute return of 12.9 percent. 4 For the $40 billion TIP
investments in Bank of America Corporation and Citigroup, Treasury received an absolute return of 7.5 percent
from dividends and an added 3.7 percent return from the sale of the warrants for a total absolute return of 11.3
percent. 5

1) TARP’s Warrant Disposition Report can be located on the OFS website in the Reports section.
2) These numbers exclude repurchases of preferred shares acquired by Treasury pursuant to the exercise of warrants issued by private
institutions, which warrants were immediately exercised by Treasury at the time of the original investment. In the six months ending
June 30, 2012, 10 private banks repurchased their warrant preferred shares. Since the program inception, 148 private banks have
repurchased their warrant preferred shares. See table on page 24.
3) For the purposes of this report, warrants in Citigroup acquired in connection with the Asset Guarantee Program (AGP) are
incorporated with the Citigroup TIP warrants.
4) Returns are not annualized.
5) AGP dividends are not included in return calculations.

WARRANT DISPOSITION REPORT – UPDATE JUNE 30, 2012

1

Repurchases
When an institution exits TARP, either by repaying its investment or participating in an auction of its preferred
stock investment, a financial institution may repurchase its warrants at an agreed upon fair market value. In all
cases, Treasury follows a consistent evaluation process to ensure that taxpayers receive fair market values for
the warrants. In the six months ending June 30, 2012, Treasury received $56.95 million from 12 banks through
warrant repurchases at agreed upon fair market values.

Auctions
If an institution decides not to repurchase its warrants, Treasury will dispose of the warrants as soon as
practicable. Treasury has been successful in effectively disposing of warrants at fair market values through
public and private auctions.
In the 24 public warrant auctions held to date, investor demand above Treasury’s minimum price has exceeded
the supply of warrant shares by an average of 6.9 times with oversubscription rates ranging from 2.0 to 18.3
times. These publicly auctioned warrants are actively traded on national exchanges, providing a liquid
secondary market and observable market pricing for long-dated warrants. Treasury held no additional public
warrant auctions in the six months ending June 30, 2012.
Treasury also sells warrants through a private placement auction when the expected proceeds of the warrant sale
do not justify the fixed cost, both to the issuing institution and the Treasury, of a registered transaction or when
the warrant position does not meet certain requirements for listing on the relevant exchange.
Each private sale of warrants uses an auction to establish a clearing price for each warrant position by allowing
qualified bidders to submit bids at or above a minimum price specified for each warrant position. Each warrant
position is sold to a single winning bidder. Treasury executed the first and, thus far, only tranche of private
placement auctions for 17 warrant positions on November 17, 2011, generating gross proceeds of $12.7 million.
Treasury expects to conduct similar auctions in the future for other warrant positions it holds in financial
institutions that have repaid CPP.

Remaining Positions
As of June 30, 2012, Treasury held warrants to purchase common stock in 37 financial institutions that have
fully repaid their CPP investments and in 94 publicly traded companies in which the CPP investment is still
outstanding. Treasury intends to continue to execute a consistent and transparent disposition process which
achieves fair market values and protects taxpayer interests.

WARRANT DISPOSITION REPORT – UPDATE JUNE 30, 2012

2

Summary of Gross Proceeds from Sale of Public Warrants since
December 31, 2011
The table below sets forth proceeds from 12 warrant repurchases completed during the six months ending June
30, 2012.

Institution Name

Ticker

Preferred Amount
Preferred
Redeemed / Received
Redemption
through Auction
Date
($ Thousands)

Warrant
Repurchase
Date

Gross Warrant
QEO?
Proceeds
(i.e. warrants
($ Thousands) cut by 50%)

REPURCHASES
Regions Financial Corp.

RF

4/4/2012

$3,500,000

5/2/2012

$45,000

-

Park National Corporation

PRK

4/25/2012

100,000

5/2/2012

2,842

-

Lakeland Bancorp Inc.

LBAI

2/8/2012

59,000

2/29/2012

2,800

-

MB Financial, Inc.

MBFI

3/14/2012

196,000

5/2/2012

1,518

Yes

Peoples Bancorp, Inc.

PEBO

12/28/2011

39,000

2/15/2012

1,201

-

The Connecticut Bank and Trust Company /
Berkshire Hills Bancorp, Inc.

BHLB

4/20/2012

5,448

4/20/2012

793

-

Wilshire Bancorp*

WIBC

4/3/2012

57,767

6/20/2012

760

-

New Hampshire Thrift Bancshares, Inc.

NHTB

8/25/2011

10,000

2/15/2012

737

-

North Central Bancshares, Inc.

FFFD

12/14/2011

10,200

1/11/2012

600

-

Pathfinder Bancorp, Inc.

PBHC

9/1/2011

6,771

2/1/2012

538

-

Peapack-Gladstone Financial Corporation

PGC

1/11/2012

28,685

4/4/2012

110

-

Seacoast Banking Corporation of Florida*

SBCF

4/3/2012

40,405

5/30/2012

55

Yes

TOTAL

12

$4,053,276

$56,954

2

*CPP preferred auction participant

WARRANT DISPOSITION REPORT – UPDATE JUNE 30, 2012

3

Background
As required by EESA, Treasury received warrants from TARP banks to provide taxpayers with an additional
potential return on the government’s investment. 6
For each CPP and TIP investment in a publicly traded company, Treasury received warrants to purchase, at a
fixed exercise price, shares of common stock equal to 15 percent of the aggregate liquidation preference of the
senior preferred investment. 7 The per share exercise price was set at the 20-trading day trailing average of the
bank’s common stock price as of the time it was given preliminary approval for the TARP investment. The
warrants may be exercised at any time over a ten year period. These public warrants include certain customary
anti-dilution provisions for Treasury’s protection.
For CPP investments in a privately-held company, an S-corporation, or certain mutual institutions, Treasury
received warrants to purchase, at a nominal cost, additional preferred stock (warrant preferreds) or subordinated
debentures (warrant sub debt) equivalent to five percent of the aggregate liquidation preference of the primary
CPP investment. These warrant preferreds and warrant sub debt securities pay a higher dividend or interest rate
than the primary CPP investment. Treasury exercised these kinds of warrants at the closings of the investments.
Institutions may repay Treasury for its CPP investment under the conditions established in the CPP purchase
agreements as amended by the American Recovery and Reinvestment Act of 2009 (ARRA). The repayment
price is equal to what Treasury invested, plus any unpaid dividends or interest. Originally, the CPP contracts
provided that an institution could not redeem the investment within the first three years except with the
proceeds of a “qualified equity offering” (QEO), which is an offering of securities that would qualify as Tier 1
capital. The repayment terms of the contracts were later effectively amended by the ARRA, which provides
that an institution can repay from any source of funds and without regard to any waiting period. For TIP
investments, an institution was required to first redeem its CPP investment before being able to redeem the TIP
preferred stock. 8
In addition, in order to encourage institutions to seek additional private capital, the CPP contracts provided that
participants could halve the number of shares subject to their warrants by completing one or more QEOs before

6) EESA provides that the Secretary may establish a “de minimis” exception to the requirement to issue warrants in the case of an
institution that receives less than $100 million in TARP funds. Treasury has exercised that authority by not requiring warrants in the
case of investments in Community Development Financial Institutions in order to encourage their participation in CPP.
7) For the AGP, Treasury received warrants in Citigroup to purchase, at a fixed exercise price, shares of common stock equal to 10
percent of the aggregate liquidation preference of the senior preferred stock received by Treasury as part of Citigroup’s participation
in the program.
8) Bank of America redeemed both its CPP and TIP at the same time on December 9, 2009. With regards to Citigroup, I) on
December 23, 2009, Citigroup redeemed the TIP trust preferred securities that Treasury had received in exchange for the original TIP
preferred stock in Citigroup, II) on September 30, 2010, Treasury sold the AGP trust preferred securities in Citigroup that Treasury
had received in exchange for the original AGP preferred stock, and III) on December 6, 2010, Treasury completed the sale of its CPP
investment in the Citigroup which had been exchanged into common stock.

WARRANT DISPOSITION REPORT – UPDATE JUNE 30, 2012

4

December 31, 2009, with aggregate gross proceeds equivalent to the value of Treasury’s CPP investment.
Thirty-eight CPP participants completed a QEO in time to reduce their warrants.
The CPP and TIP contracts further provide that once the preferred investment is redeemed or sold by Treasury,
the institution has a right to repurchase its warrants at the fair market value. In addition, Treasury has the
contractual right to sell the warrants.
The ARRA affected Treasury’s authority to dispose of warrants, as it provided that when an institution repaid,
“the Secretary shall liquidate warrants [of such institution]… at the current market price.” The ARRA was
subsequently amended in May 2009 through the Helping Families Save Their Homes Act of 2009 (HFSTHA),
which provides that the Secretary “may liquidate the warrants” following repayment.

WARRANT DISPOSITION REPORT – UPDATE JUNE 30, 2012

5

Warrant Disposition Process
Upon redemption of the preferred stock issued to Treasury, an institution has a contractual right to repurchase
its warrants at the fair market value. 9 The banks have 15 days from repayment of the preferred to submit a bid,
and Treasury then has 10 days to respond. In June 2009, Treasury announced that, in the event that an issuer
does not repurchase its warrants, Treasury would sell the warrants to third parties “as quickly as practicable”
and, when possible, by public auction.

Issuer Repurchases
If a company wishes to repurchase its warrants, the issuer and Treasury must agree on the warrants’ fair market
value. Accordingly, Treasury has established a methodology for evaluating a bank’s determination of fair
market value. As described below, Treasury’s evaluation of an issuer’s bid is based on three categories of
input: (i) market quotes, (ii) independent, third party valuations, and (iii) model valuations.
If the issuer and Treasury fail to agree on a price, an appraisal procedure may be invoked by either party within
30 days following Treasury’s response to the issuer’s first bid. In the appraisal process, each party selects an
independent appraiser. These independent appraisers conduct their own valuations and attempt to agree upon
the fair market value. If they agree on a fair market value, that valuation becomes the basis for repurchase. If
these appraisers fail to agree, a third appraiser is hired, and subject to some limitations, a composite valuation of
the three appraisals is used to establish the fair market value. To date, no institution has formally invoked the
appraisal procedure.
Even if an agreement is not reached within the specified timeframe, a bank that has repaid its preferred stock
may bid to repurchase its warrants at any time, and Treasury will determine whether to accept the bid.

Sale to Third Party
Treasury retains the right to sell the warrants to a third party at a mutually agreed upon price. Following
repayment of the preferred stock, if a bank notifies Treasury that it does not intend to repurchase its warrants or
cannot agree with Treasury on the fair market value, Treasury intends to dispose of the warrants, when possible,
through public auctions.
Treasury held the first warrant auctions in December 2009 and has held 24 public auctions to date. These
public auctions were conducted as modified “Dutch” auctions which were registered under the Securities Act of
9) Privately-held companies, S-corporations, and certain mutual institutions typically redeem their warrant preferreds or subordinated
debentures at par when redeeming the primary CPP investment. (See Appendix I for a table of warrant preferred repurchases as of
June 30, 2012.)

WARRANT DISPOSITION REPORT – UPDATE JUNE 30, 2012

6

1933. Only one bank’s warrants were sold in each public auction. In this format, bidders were able to submit
one or more independent bids at different price-quantity combinations and the warrants were sold at a uniform
price that cleared the auction.
Treasury executed the first and, thus far, only tranche of private placement auctions for 17 warrant positions on
November 17, 2011. Each private offering of warrants uses an auction to establish a clearing price for each
warrant position by allowing qualified bidders to submit bids at or above a minimum price specified for each
warrant position. Each warrant position is sold to a single winning bidder.

WARRANT DISPOSITION REPORT – UPDATE JUNE 30, 2012

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Treasury’s Evaluation of Issuer Bids
Treasury adheres to a consistent process for evaluating bids from institutions to repurchase their warrants.
Upon receiving a bid for a warrant repurchase, Treasury utilizes (i) market quotes, (ii) independent, third party
valuations, and (iii) model valuations to assess the bid.

(i) Market Quotes
There is little comparable market data for long-dated options. In order to perform its valuation analysis,
Treasury seeks indications of value from various market participants active in the options markets. The range
of estimated valuations is included in Treasury’s analysis along with the average of the market indications
collected. Treasury also utilizes the market information from the trading of auctioned TARP warrants as
another indication how of the market values long-dated warrants.

(ii) Third Party Valuations
Treasury engages outside consultants or external asset managers to provide independent, third party valuations
for the warrants. The third party provides Treasury with an estimated valuation along with a range of potential
values given a reasonable variance in the assumptions underlying their models.

(iii) Model Valuations
Treasury uses a number of financial models to estimate warrant valuations. Primarily, Treasury uses a binomial
option model adjusted for American style options, which is a well-accepted method for valuing options by both
academics and market participants. Valuation estimates generated from the binomial model are presented in the
Treasury’s analysis along with a range of potential values given a reasonable variance in key model inputs, such
as assumptions about the expected future volatility and dividend yield of the underlying stock. Treasury’s
internal valuation modeling was reviewed by Dr. Robert Jarrow, an options expert and professor at Cornell
University, who concluded that “the Treasury’s modeling methodology for valuing the warrants is consistent
with industry best practice and the highest academic standards.” More information on Treasury’s internal
valuation modeling and the report written by Dr. Jarrow can be found on the OFS website.
Treasury and its external asset managers use the 20-trading day trailing average stock price of a company in
their valuations to minimize the effects of day-to-day market fluctuations. Market participants who provide
Treasury with market indications utilize the stock price at the time that they provide the valuation. If the
discussions with an institution continue over an extended period of time, Treasury and its external asset
managers will update their estimates as necessary. Treasury may also collect new market quotes or adjust the
market quotes based on changes in market conditions from when the quotes were collected. (See Appendix I
for information on the timing of issuers’ bids.)
WARRANT DISPOSITION REPORT – UPDATE JUNE 30, 2012

8

Determination by Warrant Committee
Based on the range of estimated warrant values provided by these sources, a committee of Treasury officials
within the Office of Financial Stability (OFS), who comprise the OFS Warrant Committee, makes a
recommendation to the Assistant Secretary for Financial Stability as to whether to agree with the bank’s
determination of fair market value. Each member of the Warrant Committee and the Assistant Secretary weigh
the three valuation metrics as they deem appropriate.
Additional factors presented to the Warrant Committee, along with the three valuation metrics discussed above
include:
•

how quickly Treasury would have to monetize the warrants if the issuer does not repurchase based on
legislation in place at the time as discussed in the “Background” section of this report,

•

the expertise and experience of the outside consultant providing the third party valuation,

•

the quality and number of market indications received,

•

any significant movements in the stock price of the issuer since market indications were collected,

•

deviations of the current stock price from the 20-trading day trailing average of the company’s stock
price,

•

the size of the warrant position and potential investor interest in the warrants,

•

the liquidity of the underlying common stock, and

•

fixed transaction costs associated with selling the warrants to a third party.

WARRANT DISPOSITION REPORT – UPDATE JUNE 30, 2012

9

Repurchases of Warrants
Treasury began selling warrants back to banks that had repaid the TARP investment in May 2009. In aggregate,
as of June 30, 2012, Treasury has realized $3.7 billion in gross proceeds from 98 warrant repurchases. This
compares favorably to initial bids of $2.4 billion and estimates of aggregate value of $3.0 billion based on
market indications, $3.5 billion based on third party estimates, and $3.4 billion based on Treasury’s internal
financial model. Warrants repurchased by the issuer have yielded an extra absolute return of 4.1 percent on
Treasury’s investment.
When selling warrants back to the issuer, Treasury has achieved fair market values and protected the taxpayer.
Dr. Jarrow noted that “[Treasury’s] valuation process results in a warrant valuation that is fair to both the
participating banks and the U.S. taxpayers.” Further, the Special Inspector General for the Troubled Asset
Relief Program (SIGTARP) audit released on May 15, 2010, entitled Assessing Treasury’s Process to Sell
Warrants Received from TARP Recipients concluded that Treasury successfully negotiated prices from
institutions that wished to repurchase their warrants that were at or above Treasury’s estimated range of fair
market value for such warrants. 10 The report also described the valuation methodology to estimate fair market
value and offered no suggestions for modifying that methodology. 11

10) SIGTARP report, Assessing Treasury’s Process to Sell Warrants Received from TARP Recipients, dated May 15, 2010.
11) SIGTARP offered some suggestions regarding documentation of the negotiation process, and regarding insuring consistency in the
information provided to issuers seeking to repurchase their warrants. Treasury reviewed these suggestions carefully and has made
appropriate changes to its procedures for recording Warrant Committee meeting minutes and conversations with banks regarding the
repurchases of their warrants.

WARRANT DISPOSITION REPORT – UPDATE JUNE 30, 2012

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Auctions of Warrants
Following repayment of its preferred stock, if a bank notifies Treasury that it does not intend to repurchase its
warrants or cannot agree with Treasury on the fair market value, Treasury disposes of the warrants, when
possible, through public auctions. Since December 2009, Treasury has publicly auctioned 24 warrant positions
in 21 financial institutions, generating aggregate proceeds of approximately $5.4 billion. 12 Demand in the
public warrant auctions has exceeded the number of warrant shares being auctioned by an average of 6.9 times
with an oversubscription range of 2.0 to 18.3 times. Warrants sold through public auctions have yielded an
extra absolute return of 3.27 percent on Treasury’s investment.
The auctions have also provided valuable insights into how the market values long-dated warrants, as scores of
different bidders have placed hundreds of unique bids in each auction. The auctions have resulted in estimated
placements of approximately 46 percent to fundamental institutional investors, 25 percent to convertiblefocused investors, 19 percent to derivative-focused investors, and 10 percent to individual investors.13
Typically, many of the fundamental institutional investors who buy warrants in any given auction are also
holders of the bank's common stock.
Active secondary trading in the warrants has further validated the auction prices and provides ongoing
observable market prices for long-dated warrants. Each of the warrants sold through public auction has been
listed on the New York Stock Exchange or the NASDAQ. Trading volumes tend to be very high during the
first few days following an auction and then to fall into a lower range. Excluding the first five trading days after
each auction, the daily trading volume of the warrants has averaged 0.38 percent of the outstanding securities.
Across the 24 TARP warrant positions currently outstanding with public investors, four million warrants change
hands on a typical trading day.
In a Treasury report entitled Treasury Analysis of Warrant Auction Results, the OFS and the Office of
Economic Policy also examined three CPP warrant auctions and one TIP warrant auction, each of which
generated proceeds in excess of $100 million. 14 This report concluded that no single bidder had a large impact
on the final clearing price in these four auctions. Further, the report showed that increasing the amount of
smaller bidders participating in the auctions would not have had a material impact on the final clearing price.
These two results suggest that the auctions were robust and achieved a fair market value.
Treasury has successfully disposed of warrants through the auction process. Clearing prices have been set
through robust competition between a large number of bidders, and fair market value has been achieved for
taxpayers. Additionally, an active and liquid secondary market for the warrants has been established, providing
greater confidence in the market value of the total Treasury warrant portfolio and thereby supporting future
auctions.
12) Treasury held two separate auctions for different Bank of America Corporation CPP and TIP warrants. See footnote 5.
13) The estimated placements to different investor types are calculated excluding any allocations to the issuing institution.
14) The report Treasury Analysis of Warrant Auction Results can be found on the Treasury website.

WARRANT DISPOSITION REPORT – UPDATE JUNE 30, 2012

11

Modified “Dutch” Auctions
For the public warrant auctions completed
to date, Treasury has utilized modified
“Dutch” auctions to dispose of the warrants.
The public auctions were registered under
the Securities Act of 1933. Only one bank’s
warrants were sold in each such auction.
With advice from its external asset
managers and the auction agent, Treasury
publicly disclosed a minimum bid for each
auction. Bidders were able to submit one or
more independent bids at different pricequantity combinations at or above the set
minimum price. The auction agent did not
provide bidders with any information about
the bids of other bidders or auction trends,
or with advice regarding bidding strategies,
in connection with the auction. The issuers
of the warrants were able to bid for their
Bids were
warrants in the auctions.
accepted by the auction agent from 8:00
a.m. to 6:30 p.m. on the day of the auction.
The warrants were sold to all winning bids
at the uniform price that cleared the auction.
Deutsche Bank Securities Inc. has been
Treasury’s auction agent each public
auction to date. Deutsche Bank receives
fees equal to approximately 1.3 percent of
the gross proceeds ($72.1 million) which is
significantly below typical secondary equity
offering fees that run around 3.5 percent to
4.5 percent depending on the size of the
offering.
For illustrative purposes only, Figures 1 and
2 are example charts of the demand in a
theoretical auction of an 8 million share
position with a minimum price of $3.00 per
share and a clearing price of $5.75 per
share.

Figure 1: Illustrative Cumulative Auction Demand by Price
Millions

Example of Cumulative Demand by Price

30

25

20

15

10
Example Auction Clearing Price $5.75

5

0
$3.00 $3.25 $3.50 $3.75 $4.00 $4.25 $4.50 $4.75 $5.00 $5.25 $5.50 $5.75 $6.00 $6.25 $6.50 $6.75 $7.00 $7.25 $7.50 $7.75 $8.00

Figure 2: Illustrative Auction Demand by Price
Millions
3.5

Example of Demand by Price

3.0

2.5
Example Auction Clearing Price $5.75
2.0

1.5

1.0

0.5

0.0
$3.00$3.25$3.50$3.75$4.00$4.25$4.50$4.75$5.00$5.25$5.50$5.75$6.00$6.25$6.50$6.75$7.00$7.25$7.50$7.75$8.00

WARRANT DISPOSITION REPORT – UPDATE JUNE 30, 2012

12

Private Placement Auctions of Warrants
Warrants are also sold through private placement auctions when the expected proceeds of the warrant sale do
not justify the fixed cost, both to the issuing institution and the Treasury, of a registered transaction or when the
warrant position does not meet certain requirements for listing on the relevant exchange.
These sales are executed using an auction to establish a clearing price for each warrant position by allowing
appropriately qualified bidders to submit bids at or above a minimum price specified for each warrant position.
Each warrant position is sold to a single winning bidder.
Treasury executed the first and, thus far, only tranche of private placement auctions for 17 warrant positions on
November 17, 2011, generating gross proceeds of $12.7 million. Treasury expects to conduct similar auctions
in the future for other warrant positions it holds in financial institutions that have repaid CPP.

WARRANT DISPOSITION REPORT – UPDATE JUNE 30, 2012

13

Appendix I – Detailed Tables of
Warrant Repurchases and Auctions

WARRANT DISPOSITION REPORT – UPDATE JUNE 30, 2012

14

OZRK
WAIN
LSBX
WSBC
UBSH
FFIC
TRMK
OCFC
MNRK
UMPQ
CYN
FLFL
SIVB
DFS
BHB
CZNC

Bank of the Ozarks, Inc.

Wainwright Bank and Trust

LSB Corporation

Wesbanco, Inc.

Union Bankshares Corporation

Flushing Financial Corporation

Trustmark Corporation

OceanFirst Financial Corp.

Monarch Financial Holdings, Inc.

Umpqua Holdings Corp.

City National Corporation

First Litchfield Financial Corporation

SVB Financial Group

Discover Financial Services

Bar Harbor Bankshares

Citizens & Northern Corporation

SUSQ
EWBC
SASR
WBCO
SRCE
FHN
FITB

Susquehanna Bancshares, Inc.

East West Bancorp, Inc.

Sandy Spring Bancorp, Inc.

Washington Banking Company

1st Source Corporation

First Horizon National Corporation
Fifth Third Bancorp

HBAN

CVBF

CVB Financial Corp.

FPTB

CSFL

CenterState Banks, Inc.

Huntington Bancshares Incorporated

MNHN

Manhattan Bancorp

First PacTrust Bancorp Inc.

BARI

Bancorp Rhode Island, Inc.

CJBK

OLBK

Old Line Bancshares

Central Jersey Bancorp

NTRS

Northern Trust Corporation

FULT

MS

Morgan Stanley

Fulton Financial Corporation

BK

Bank of New York Mellon

COLB

AXP

American Express Company

TBBK

GS

Goldman Sachs Group, Inc.

The Bancorp, Inc.

BBT

Columbia Banking System

USB

BB&T Corporation

SOMH

Somerset Hills Bancorp

U.S. Bancorp

BHLB

Berkshire Hills Bancorp

STT

SCBT

SCBT Financial Corporation

State Street Corporation

ALNC

Alliance Financial Corporation

HFFC

INDB

Independent Bank Corp

HF Financial Corp.

FMER

FirstMerit Corp

FNFG

SNBC

Sun Bancorp

First Niagra Financial Group

ONB
IBKC

Old National Bancorp

IBERIABANK Corporation

Company

9/16/2009
9/30/2009
9/2/2009
11/4/2009
11/24/2009
11/18/2009
9/2/2009
11/18/2009
10/28/2009
12/3/2009
12/30/2009
12/23/2009
2/17/2010
3/3/2010

1,700
27,875
130,000
75,000
22,000
15,000
75,000
59,000
70,000
215,000
38,263
14,700
214,181
400,000

12/29/2010
12/29/2010
12/15/2010
1/12/2011
12/29/2010
12/22/2010
2/2/2011

300,000
306,546
83,094
26,380
111,000
866,540
3,408,000

12/15/2010
12/22/2010

11/24/2010

11,300
19,300

7/14/2010

376,500

1,398,071

8/11/2010
3/10/2010

76,898
45,220

8/4/2010

8/5/2009

2/24/2010

7/15/2009

7,000
30,000

26,400

6/17/2009

1,576,000

18,751

6/17/2009

10,000,000

4/21/2010

6/17/2009

3,000,000

1,224,558

6/17/2009

3,388,890

4/7/2010

6/17/2009

10,000,000

12/23/2009

6/17/2009

3,133,640

10,000

6/17/2009

6,599,000

235,000

6/17/2009

5/20/2009

7,414

2,000,000

5/27/2009

40,000

6/3/2009

5/20/2009

64,779

25,000

5/13/2009

26,918

5/27/2009

4/22/2009

78,158

184,011

4/8/2009
4/22/2009

89,310

90,000
125,000

3/31/2009
3/31/2009

$100,000

CPP Preferred Redemption
Ticker
($ Thousands)
Date

WARRANT DISPOSITION REPORT – UPDATE JUNE 30, 2012
273,919

51,948

3,250

1,370

3,077

12,000

4,482

49,100

291

320

8,000

3,546

3,302

400

67

165,000

3,800

1,488

11,900

2,055

209

431

8,167

597

400

825

500

569

2,161

1,002

168

63

857

175

37,000

500,000

79,000

230,000

600,000

20,854

115,000

60,000

465

1,500

193

875

694

320

880

3,186

1,049

620

$559

Bid #1

280,026

79,700

3,750

1,575

3,430

14,500

5,269

1,003

9,500

4,852

175

180,000

6,200

17,500

3,610

250

9,200

700

450

950

560

2,650

1,307

212

1,125

205

75,000

800,000

118,000

260,000

900,000

41,707

131,000

600

2,700

275

1,040

1,400

900

2,200

5,025

2,100

1,200

$1,200

Bid #2

280,026

3,750

1,625

3,750

10,800

4,754

225

172,000

6,820

18,500

4,250

260

9,600

860

950

1,400

225

87,000

900,000

130,000

340,000

1,100,000

64,925

139,000

650

Bid #3

Issuer Bids

4,200

250

4,500

10,000

900

950,000

136,000

67,010

Bid #4

4,450

280,026

79,700

3,750

1,625

4,450

14,500

5,269

49,100

1,003

320

10,800

4,754

3,302

400

250

172,000

6,820

1,488

18,500

4,500

260

431

10,000

900

450

950

560

569

2,650

1,307

212

63

1,400

225

87,000

950,000

136,000

340,000

1,100,000

67,010

139,000

60,000

650

2,700

275

1,040

1,400

900

2,200

5,025

2,100

1,200

$1,200

Final Price
Bid # 5
($ Thousands)

2/16/2011

1/26/2011

1/20/2011

1/28/2011

12/29/2010

1/11/2011

12/29/2010

1/6/2011

12/17/2010

12/1/2010

8/6/2010

3/15/2010

8/19/2010

8/19/2010

3/10/2010

4/23/2010

2/18/2010

4/7/2010

3/17/2010

3/2/2010

1/6/2010

1/21/2010

12/23/2009

11/10/2009

11/24/2009

9/22/2009

12/4/2009

12/3/2009

11/5/2009

9/17/2009

10/9/2009

9/29/2009

8/19/2009

7/29/2009

6/18/2009

6/30/2009

6/30/2009

7/1/2009

6/17/2009

6/24/2009

6/18/2009

6/22/2009

6/9/2009

6/4/2009

6/4/2009

6/8/2009

6/3/2009

5/26/2009

5/2/2009

5/15/2009

4/21/2009

4/14/2009

4/15/2009

Bid #1

3/8/2011

3/4/2011

1/31/2011

2/8/2011

1/21/2011

1/21/2011

1/12/2011

12/30/2010

9/2/2010

3/29/2010

4/23/2010

5/4/2010

6/4/2010

4/5/2010

3/19/2010

1/22/2010

12/28/2009

12/14/2009

12/16/2009

10/20/2009

12/8/2009

11/18/2009

10/21/2009

10/20/2009

9/16/2009

8/19/2009

8/17/2009

8/3/2009

7/29/2009

7/20/2009

7/20/2009

7/8/2009

7/1/2009

6/29/2009

6/19/2009

6/17/2009

6/17/2009

6/16/2009

6/12/2009

5/21/2009

5/21/2009

5/19/2009

5/12/2009

5/6/2009

Bid #2

3/14/2011

3/2/2011

2/16/2011

2/2/2011

9/3/2010

9/2/2010

7/20/2010

6/29/2010

6/8/2010

4/6/2010

3/22/2010

2/1/2010

12/28/2009

12/23/2009

12/11/2009

9/21/2009

8/20/2009

8/19/2009

8/4/2009

7/30/2009

7/27/2009

7/21/2009

7/14/2009

7/8/2009

6/29/2009

Bid #3

8/5/2009

7/31/2009

7/14/2009

Bid #4

2/11/2011

7/22/2010

3/22/2010

12/29/2009

12/28/2009

Date of Issuer Bids
Warrant
Repurchase
Date
5/8/2009
5/20/2009
5/27/2009
5/27/2009
5/27/2009
6/17/2009
6/24/2009
6/24/2009
6/24/2009
6/24/2009
6/30/2009
7/8/2009
7/15/2009
7/22/2009
7/22/2009
7/29/2009
8/5/2009
8/12/2009
8/26/2009
9/2/2009
9/30/2009
10/14/2009
10/28/2009
10/28/2009
11/24/2009
12/16/2009
12/16/2009
12/23/2009
12/23/2009
12/30/2009
12/30/2009
2/3/2010
2/10/2010
3/31/2010
4/7/2010
4/7/2010
6/16/2010
7/7/2010
7/28/2010
9/1/2010
9/1/2010
9/8/2010
9/8/2010
12/1/2010
1/5/2011
1/19/2011
1/19/2011
1/26/2011
2/11/2011
2/23/2011
3/2/2011
3/9/2011
3/9/2011
3/16/2011
Bid #5

Issuer Bids Ordered by Repurchase Date

15

7/6/2011
7/6/2011
12/22/2010

50,000
16,000
24,000

9,000

38,237

WARRANT DISPOSITION REPORT – UPDATE JUNE 30, 2012
98

TOTAL

57,767

$55,885,293

4/3/2012

4/3/2012

3/14/2012

4/25/2012

4/4/2012

4/20/2012

1/11/2012

2/8/2012

8/25/2011

12/28/2011

9/1/2011

12/14/2011

11/23/2011

9/15/2011

8/18/2011

9/15/2011

9/15/2011

4/15/2009

9/22/2011

8/25/2011

8/11/2011

9/26/2011

9/1/2011

8/11/2011

9/15/2011

8/25/2011

9/15/2011

8/25/2011

8/18/2011

8/18/2011

8/11/2011

8/18/2011

8/4/2011

8/4/2011

6/29/2011

$2,398,970

665

40

541

2,842

32,000

793

40

2,044

553

475

454

397

900

143

51

230

550

254

144

113

392

96

107

200

1,101

2,100

1,800

313

527

185

408

4,500

373

270

356

599

286

800

697

6,000

946

1,418

63,000

1,150

486

Bid #1

760

55

1,300

39,000

70

2,800

737

950

538

500

200

300

850

25

225

202

659

125

375

2,200

563

507

6,436

458

303

559

372

950

1,300

6,900

1,853

70,000

1,395

765

Bid #2

1,518

45,000

75

1,201

600

222

375

1,100

202

708

385

2,300

900

560

6,436

315

700

390

1,000

2,080

882

Bid #3

Issuer Bids

95

245

205

812

415

2,400

450

1,000

Bid #4

110

825

460

2,525

$3,743,008

760

55

1,518

2,842

45,000

793

110

2,800

737

1,201

538

600

900

245

51

375

1,100

25

225

205

825

125

107

460

1,101

2,525

1,800

900

527

185

560

6,436

458

315

700

599

450

1,000

1,300

6,900

946

2,080

70,000

1,395

1,000

Final Price
Bid # 5
($ Thousands)

5/16/2012

4/17/2012

3/22/2012

4/25/2012

4/10/2012

3/23/2012

1/26/2012

2/10/2012

1/12/2012

1/18/2012

12/1/2011

12/15/2011

12/6/2011

9/30/2011

11/16/2011

9/22/2011

9/28/2011

5/7/2009

10/5/2011

8/31/2011

9/12/2011

10/4/2011

10/11/2011

9/7/2011

10/4/2011

9/9/2011

9/16/2011

8/26/2011

8/31/2011

9/9/2011

8/22/2011

8/22/2011

8/16/2011

8/16/2011

7/12/2011

8/9/2011

1/4/2011

7/13/2011

7/7/2011

4/26/2011

5/5/2011

4/8/2011

4/6/2011

3/30/2011

3/23/2011

Bid #1

6/11/2012

5/15/2012

4/17/2012

4/24/2012

2/9/2012

2/24/2012

2/9/2012

1/31/2012

1/27/2012

1/3/2012

11/2/2011

10/20/2011

10/20/2011

11/2/2011

11/2/2011

9/15/2011

9/29/2011

10/17/2011

9/26/2011

9/26/2011

9/7/2011

9/8/2011

9/8/2011

8/31/2011

8/31/2011

8/5/2011

1/18/2011

7/20/2011

7/21/2011

5/13/2011

4/21/2011

4/18/2011

4/8/2011

4/5/2011

Bid #2

4/26/2012

4/25/2012

2/13/2012

2/3/2012

1/4/2012

11/14/2011

10/28/2011

11/8/2011

9/29/2011

10/20/2011

9/29/2011

9/29/2011

9/20/2011

9/20/2011

9/15/2011

9/8/2011

8/23/2011

6/24/2011

7/21/2011

5/2/2011

4/6/2011

Bid #3

10/6/2011

8/5/2011

4/8/2011

Bid #4

3/20/2012

11/22/2011

10/28/2011

10/25/2011

10/12/2011

Date of Issuer Bids

3/26/2012

10/27/2011

10/18/2011

10/12/2011

Bid #5

Warrant
Repurchase
Date
4/13/2011
4/20/2011
4/20/2011
5/11/2011
5/18/2011
6/3/2011
7/27/2011
7/27/2011
8/17/2011
8/24/2011
8/31/2011
9/14/2011
9/21/2011
9/21/2011
9/28/2011
9/28/2011
9/28/2011
9/28/2011
9/28/2011
10/19/2011
10/19/2011
10/26/2011
10/26/2011
10/26/2011
11/2/2011
11/2/2011
11/9/2011
11/16/2011
11/16/2011
11/16/2011
12/7/2011
12/7/2011
12/21/2011
1/11/2012
2/1/2012
2/15/2012
2/15/2012
2/29/2012
4/4/2012
4/20/2012
5/2/2012
5/2/2012
5/2/2012
5/30/2012
6/20/2012

Note: The first bid date is the date that an issuer submitted its bid. Subsequent bid dates are the dates the Warrant Committee met to consider those bids.
*CPP preferred auction participant

WIBC

Wilshire Bancorp*

40,405

196,000

MBFI
SBCF

MB Financial, Inc.

Seacoast Banking Corporation of Florida*

100,000

3,500,000

RF
PRK

Regions Financial Corp.

5,448

28,685

10,200

193,000

Park National Corporation

BHLB

Connecticut Bank and Trust Company/Berkshire

59,000

LBAI
PGC

10,000

PEBO
NHTB

Peoples Bancorp, Inc.

New Hampshire Thrift Bancshares, Inc.

Lakeland Bancorp Inc.

39,000

FFFD
PBHC

North Central Bancshares, Inc.

Pathfinder Bancorp, Inc.

Peapack-Gladstone Financial Corporation

6,771

FMBI

First Midwest Bancorp, Inc.

7,500
10,000

EMCF
CNBC

Emclaire Financial Corp.

17,390

20,500

8,816

Center Bancorp, Inc.

QCRH
FNRN

QCR Holdings, Inc.

CSBC
SHBI

Citizens South Banking Corporation

Shore Bancshares, Inc.

First Northern Community Bancorp

25,000

SAL

Salisbury Bancorp, Inc.

17,000
21,000

BOCH
ASRV

Bank of Commerce Holdings

10,000

7,000

AmeriServ Financial, Inc.

CPBC
SSFN

10,000
19,468

CEBK
CBIN

Central Bancorp, Inc.

Community Bank Shares of Indiana, Inc.

Community Partners Bancorp

32,382
81,698

MFSF
HTLF

MutualFirst Financial, Inc.

Heartland Financial USA, Inc.

Stewardship Financial Corporation

16,500

CVCY
CVLY

Central Valley Community Bancorp

Codorus Valley Bancorp, Inc.

58,000
13,500

GSBC
OVLY

11,750

8,500

36,000

Great Southern Bancorp

DNBF

DNB Financial Corporation

4/29/2011

300,000

7/14/2011

4/27/2011

42,000

25,000

3/30/2011
3/30/2011

25,000
37,515

Oak Valley Bancorp

WTBA
SSBI

West Bancorporation, Inc.

Summit State Bank

MOFG
HFWA
FCAL

HBHC
HOMB

Whitney Holding Corporation/Hancock

Home Bancshares, Inc.

MidWestOne Financial Group, Inc

STL

Sterling Bancorp

Heritage Financial Corporation
First California Financial Group, Inc

KEY
FISI

KeyCorp

23,864

BBNK

Financial Institutions, Inc.

3/16/2011
2/23/2011

150,000

NPBC

National Penn Bancshares, Inc.

Bridge Capital Holdings

Company

CPP Preferred Redemption
Ticker
($ Thousands)
Date

Issuer Bids Ordered by Repurchase Date (continued)

16

Company
Capital One Financial Corp.
JPMorgan Chase & Co.
TCF Financial Corporation
Bank of America Corporation (CPP)
Bank of America Corporation (TIP)
Washington Federal, Inc.
Signature Bank
Texas Capital Bancshares
PNC Financial Services Group, Inc.
Comerica Incorporated
Valley National Bancorp
Wells Fargo & Company
First Financial Bancorp
Sterling Bancshares, Inc.
Lincoln National Corporation
Hartford Financial Services Group, Inc.
Citigroup, Inc. (TIP/AGP)
Citigroup, Inc. (CPP)
Boston Private Financial Holdings, Inc.
Wintrust Financial Corporation
Webster Financial Corporation
SunTrust Banks, Inc. (A & B Warrants)
Associated Banc-Corp
TOTAL

Ticker
COF
JPM
TCB
BAC
BAC
WFSL
SBNY
TCBI
PNC
CMA
VLY
WFC
FFBC
SBIB
LNC
HIG
C
C
BPFH
WTFC
WBS
STI
ASBC
24

CPP/TIP
Preferred
Redemption
($thousands)
Date
$3,555,199
6/17/2009
25,000,000
6/17/2009
361,172
4/22/2009
25,000,000
12/9/2009
20,000,000
12/9/2009
200,000
5/27/2009
120,000
3/31/2009
75,000
5/13/2009
7,579,200
2/10/2010
2,250,000
3/17/2010
300,000
12/23/2009
25,000,000
12/23/2009
80,000
2/24/2010
125,198
5/5/2009
950,000
6/30/2010
3,400,000
3/31/2010
20,000,000
12/23/2009
25,000,000
12/6/2010
154,000
6/16/2010
250,000
12/22/2010
400,000
12/29/2010
4,850,000
3/30/2011
525,000
4/6/2011
$165,174,769
Bid #1 Bid #2 Bid #3
$46,500
825,539
3,200
N/A
N/A
N/A
N/A
N/A
N/A
N/A
2,291
593,600 700,000 750,000
N/A
4,000
N/A
N/A
N/A
N/A
4,300
N/A
N/A
N/A
N/A

Issuer Bids
Auction
Proceeds
($thousands)
$148,731
950,318
9,600
310,572
1,255,639
15,623
11,321
6,709
324,196
183,673
5,572
849,015
3,116
3,008
216,621
713,687
257,583
54,622
6,353
25,964
20,678
30,494
3,585
$5,406,680
Bid #1
Bid #2
Bid #3 Auction Date
6/30/2009
12/3/2009
6/17/2009
12/10/2009
5/5/2009
12/15/2009
N/A
3/3/2010
N/A
3/3/2010
N/A
3/9/2010
N/A
3/10/2010
N/A
3/11/2010
N/A
4/29/2010
N/A
5/6/2010
1/7/2010
5/18/2010
1/7/2010 2/12/2010 2/22/2010
5/20/2010
N/A
6/2/2010
6/5/2009
6/9/2010
N/A
9/16/2010
N/A
9/21/2010
N/A
1/25/2011
N/A
1/25/2011
7/12/2010
2/1/2011
N/A
2/8/2011
N/A
6/2/2011
N/A
9/22/2011
N/A
11/30/2011

Date of Issuer Bids

Issuer Bids and Warrant Auctions Ordered by Auction Date

WARRANT DISPOSITION REPORT – UPDATE JUNE 30, 2012

17

Ticker

BMRC
FCBC
WABC
FNB
LCNB
EGBN
MBRG
LKFN
FCCY
HBNC
BUSE
MSL
FBNC
COBZ
FRME
WAL
EBTX
17

Company

Bank of Marin Bancorp
First Community Bancshares Inc.
Westamerica Bancorporation
F.N.B. Corporation
LCNB Corp.
Eagle Bancorp, Inc.
Middleburg Financial Corporation
Lakeland Financial Corporation
1st Constitution Bancorp
Horizon Bancorp
First Busey Corporation
MidSouth Bancorp, Inc.
First Bancorp
CoBiz Financial Inc.
First Merchants Corporation
Western Alliance Bancorporation
Encore Bancshares Inc.
TOTAL

$28,000
41,500
41,863
100,000
13,400
38,235
22,000
56,044
12,000
25,000
100,000
20,000
65,000
64,450
46,400
140,000
34,000
$847,892

CPP/TIP
Preferred
($thousands)

3/31/2009
7/8/2009
9/2/2009
9/9/2009
10/21/2009
12/23/2009
12/23/2009
6/9/2010
10/27/2010
11/10/2010
8/25/2011
8/25/2011
9/1/2011
9/8/2011
9/22/2011
9/26/2011
9/26/2011

Redemption
Date

$1,368
N/A
N/A
N/A
N/A
N/A
N/A
N/A
217
N/A
41
N/A
N/A
N/A
N/A
320
N/A

Bid #1

650

58

425

750

Bid #2 Bid #3

Issuer Bids

$1,704
31
878
690
603
2,794
301
878
327
1,751
64
207
924
144
368
415
637
$12,714

Auction
Proceeds
($thousands)
Bid #2

Bid #3

Auction
Date

11/1/2011
11/17/2011
N/A
11/17/2011
N/A
11/17/2011
N/A
11/17/2011
N/A
11/17/2011
N/A
11/17/2011
N/A
11/17/2011
N/A
11/17/2011
11/10/2011 11/24/2010
11/17/2011
N/A
11/17/2011
9/6/2011 9/21/2011
11/17/2011
N/A
11/17/2011
N/A
11/17/2011
N/A
11/17/2011
N/A
11/17/2011
10/11/2011 11/1/2011 11/8/2011 11/17/2011
N/A
11/17/2011

Bid #1

Date of Issuer Bids

Issuer Bids and Private Placement Sale of Warrants

WARRANT DISPOSITION REPORT – UPDATE JUNE 30, 2012

18

Warrant Repurchases Ordered by Amount of Proceeds
Decision Date

Goldman Sachs Group, Inc.

QEO?
(i.e.
Final
Warrant
warrants
Decision Payment Expiration Strike
Warrant Repurchase
cut by
Ticker Date
Date
Date
Price
Shares Price/Share
50%)
GS
7/21/2009 7/22/2009 10/28/2018 $122.90
12,205,045
$90.13

Morgan Stanley

MS

Institution Name

8/5/2009

8/12/2009 10/28/2018

22.99

-

65,245,759

14.56

Warrant
Repurchase
Proceeds

Estimated
Implied
Volatility*

Stock
Price

20-day Warrant
Avg
Price /
Stock
Stock Underlying
/ Strike
Price
Price

$1,100,000,000 40.6% - 44.5% $159.80 $148.16
950,000,000 33.3% - 38.7%

31.05

28.16

0.56

1.30 x

0.47

1.35 x

American Express Company

AXP

7/27/2009

7/29/2009

1/9/2019

20.95

-

24,264,129

14.01

340,000,000 37.6% - 40.7%

28.38

25.71

0.49

1.35 x

Fifth Third Bancorp

FITB

3/14/2011

3/16/2011 12/31/2018

11.72

-

43,617,747

6.42

280,025,936 30.1% - 37.4%

13.90

14.37

0.46

1.19 x

Discover Financial Services

DFS

6/29/2010

U.S. Bancorp

USB

7/8/2009

3/13/2019

8.96

-

20,500,413

8.39

172,000,000 45.6% - 52.7%

13.80

13.66

0.61

1.54 x

7/15/2009 11/14/2018

7/7/2010

30.29

-

32,679,102

4.25

139,000,000 39.3% - 42.6%

16.59

17.69

0.26

0.55 x

Bank of New York Mellon

BK

7/31/2009

8/5/2009 10/28/2018

31.00

-

14,516,129

9.37

136,000,000 35.7% - 39.6%

27.34

27.98

0.34

0.88 x

Northern Trust Corporation

NTRS

8/19/2009

8/26/2009 11/14/2018

61.81

-

3,824,624

22.75

87,000,000 31.1% - 35.9%

60.38

60.00

0.38

0.98 x

First Horizon National Corporation

FHN

3/4/2011

3/9/2011 11/14/2018

8.76

-

14,842,321

5.37

79,700,000 24.9% - 34.0%

11.43

11.62

0.47

1.30 x

KeyCorp

KEY

4/18/2011

4/20/2011 11/14/2018

10.64

-

35,244,361

1.99

70,000,000 31.4% - 34.4%

8.59

8.80

0.23

0.81 x

BB&T Corporation

BBT

7/14/2009

7/22/2009 11/14/2018

33.81

-

13,902,573

4.82

67,010,402 32.0% - 35.1%

21.65

21.64

0.22

0.64 x

State Street Corporation

STT

7/1/2009

7/8/2009 10/28/2018

53.80

Yes

2,788,104

21.52

60,000,000 37.9% - 43.8%

47.35

46.98

0.45

0.88 x

Huntington Bancshares Incorporated

HBAN

1/13/2011

1/19/2011 11/14/2018

8.90

-

23,562,994

2.08

49,100,000 35.1% - 38.6%

7.12

6.92

0.29

0.80 x

Regions Financial Corp.

RF

4/25/2012

5/2/2012 11/14/2018

10.88

-

48,253,677

0.93

45,000,000 32.7% - 34.8%

6.45

6.34

0.14

0.59 x

City National Corporation

CYN

4/6/2010

4/7/2010 11/21/2018

53.16

-

1,128,668

16.39

18,500,000 23.5% - 27.9%

55.70

53.90

0.29

1.05 x
1.37 x

East West Bancorp, Inc.

EWBC

1/21/2011

Fulton Financial Corporation

FULT

9/3/2010

Trustmark Corporation

TRMK

1/26/2011

12/5/2018

15.15

Yes

1,517,555

9.55

14,500,000 25.8% - 33.5%

20.78

20.28

0.46

9/8/2010 12/23/2018

10.25

-

5,509,756

1.96

10,800,000 27.9% - 30.8%

8.72

8.52

0.22

0.85 x

12/29/2009 12/30/2009 11/21/2018

19.57

-

1,647,931

6.07

10,000,000 19.0% - 22.9%

22.80

20.84

0.27

1.17 x

1,100,000

6.27

6,900,000 30.0% - 32.6%

31.76

32.32

0.20

0.78 x

354,058

19.26

6,820,000 39.2% - 44.7%

42.24

45.32

0.46

0.85 x

Whitney Holding Company / Hancock

HBHC

5/13/2011

6/3/2011 12/19/2018

40.91

-

SVB Financial Group

SIVB

6/8/2010

6/16/2010 12/12/2018

49.78

Yes

Great Southern Bancorp

GSBC

9/15/2011

9/21/2011

12/5/2018

9.57

-

909,091

7.08

6,436,364 32.7% - 34.2%

16.36

16.61

0.43

1.71 x

Susquehanna Bancshares, Inc.

SUSQ

1/12/2011

1/19/2011 12/12/2018

14.86

-

3,028,264

1.74

5,269,179 33.3% - 36.0%

9.18

9.47

0.19

0.62 x

5/27/2009

0.89 x

FirstMerit Corp

FMER

5/21/2009

1/9/2019

19.69

-

952,260

5.28

5,025,000 34.9% - 38.3%

17.54

19.27

0.30

The Bancorp, Inc.

TBBK

9/2/2010

9/8/2010 12/12/2018

3.46

Yes

980,203

4.85

4,753,985 46.7% - 55.6%

6.89

6.60

0.70

1.99 x

Umpqua Holdings Corp.

UMPQ

3/22/2010

3/31/2010 11/14/2018

14.46

Yes

1,110,897

4.05

4,500,000 25.1% - 29.4%

13.60

12.87

0.30

0.94 x
1.01 x

Sandy Spring Bancorp, Inc.

SASR

2/11/2011

2/23/2011

12/5/2018

19.13

-

651,547

6.83

4,450,000 29.8% - 34.5%

19.35

18.97

0.35

1st Source Corporation

SRCE

3/2/2011

3/9/2011

1/23/2019

19.87

-

837,947

4.48

3,750,000 25.8% - 28.7%

9.15

9.01

0.49

0.46 x

Columbia Banking System, Inc.

COLB

8/25/2010

9/1/2010 11/21/2018

14.49

Yes

398,023

8.30

3,301,647 40.3% - 46.0%

17.00

17.21

0.49

1.17 x

5/2/2012 12/23/2018

1.02 x

Park National Corporation

PRK

4/30/2012

65.97

-

227,376

12.50

2,842,400 28.5% - 30.4%

67.55

66.69

0.19

Lakeland Bancorp Inc.

LBAI

2/24/2012

2/29/2012

2/6/2019

8.88

-

997,050

2.81

2,800,000 28.0% - 31.2%

10.00

9.98

0.28

1.13 x

First Niagara Financial Group

FNFG

6/19/2009

6/24/2009 11/21/2018

14.48

Yes

953,096

2.83

2,700,000 28.5% - 31.7%

11.93

12.05

0.24

0.82 x

Bank of the Ozarks, Inc.

OZRK

11/18/2009 11/24/2009 12/12/2018

29.62

-

379,811

6.98

2,650,000 20.9% - 25.1%

27.48

24.46

0.25

0.93 x

Central Bancorp, Inc.

CEBK

10/12/2011 10/19/2011

12/5/2018

6.39

-

234,742

10.76

2,525,000 51.6% - 58.2%

16.14

17.15

0.67

2.53 x
0.81 x

Independent Bank Corp

INDB

5/21/2009

5/27/2009

1/9/2019

24.34

-

481,664

4.57

2,200,000 28.5% - 31.6%

19.60

19.92

0.23

Sun Bancorp

SNBC

5/19/2009

5/27/2009

1/9/2019

8.27

-

1,620,545

1.30

2,100,000 16.0% - 19.9%

6.25

6.36

0.21

0.76 x

Financial Institutions, Inc.

FISI

5/2/2011

5/11/2011 12/23/2018

14.88

378,175

5.50

2,079,963 30.7% - 34.1%

16.55

16.88

0.33

1.11 x

9/28/2011 12/19/2018

Heartland Financial USA, Inc.

HTLF

9/16/2011

Washington Banking Company

WBCO

2/16/2011

MB Financial, Inc.

MBFI

4/26/2012

First Litchfield Financial Corporation

FLFL

4/7/2010

SCBT Financial Corporation

SCBT

6/16/2009

20.10

-

609,687

2.95

1,800,000 38.4% - 41.1%

12.70

13.95

0.23

0.63 x

3/2/2011

1/16/2019

8.04

Yes

246,082

6.60

1,625,000 21.8% - 30.2%

13.63

13.69

0.48

1.70 x

5/2/2012

12/5/2018

29.05

Yes

506,024

3.00

1,518,072 24.8% - 27.3%

20.93

20.83

0.14

0.72 x

4/7/2010 12/12/2018

7.53

-

199,203

7.47

1,488,046

14.95

14.65

0.50

1.99 x

1/16/2019

32.06

-

303,083

4.62

1,400,000 24.1% - 27.4%

23.16

23.45

0.20

0.72 x

6/24/2009

N/A

Bancorp Rhode Island, Inc.

BARI

9/21/2009

9/30/2009 12/19/2018

23.32

-

192,967

7.26

1,400,000 21.9% - 26.6%

24.66

25.57

0.29

1.06 x

Bridge Capital Holdings

BBNK

4/8/2011

4/20/2011 12/23/2018

9.03

-

396,412

3.52

1,395,000 20.1% - 25.5%

9.82

9.41

0.36

1.09 x

CVB Financial Corp.

CVBF

12/5/2018

11.68

Yes

834,761

1.57

1,307,000 26.4% - 29.2%

8.81

7.73

0.18

0.75 x

Home Bancshares, Inc.

HOMB

23.66

Yes

158,472

8.20

1,300,000 25.9% - 30.6%

24.46

23.98

0.34

1.03 x

10/21/2009 10/28/2009
7/21/2011

7/27/2011

1/16/2019

2/15/2012

1/30/2019

18.66

-

313,505

3.83

1,200,724 31.3% - 34.1%

16.62

15.22

0.23

0.89 x

5/8/2009 12/12/2018

18.45

-

813,008

1.48

1,200,000 20.3% - 23.6%

14.33

14.18

0.10

0.78 x

Peoples Bancorp, Inc.

PEBO

2/3/2012

Old National Bancorp

ONB

5/6/2009

IBERIABANK Corporation

IBKC

5/12/2009

5/20/2009

12/5/2018

48.74

Yes

138,490

8.66

1,200,000 17.5% - 20.8%

47.22

48.23

0.18

0.97 x

Community Bank Shares of Indiana, Inc.

CBIN

10/4/2011 10/19/2011

5/29/2019

7.56

-

386,270

2.85

1,100,870 26.7% - 29.9%

9.39

9.65

0.30

1.24 x

QCR Holdings, Inc.

QCRH

11/8/2011 11/16/2011

2/13/2019

10.99

-

521,888

2.11

1,100,000 28.5% - 31.5%

8.95

9.03

0.24

0.81 x

Berkshire Hills Bancorp

BHLB

6/17/2009

6/24/2009 12/19/2018

26.51

-

226,330

4.60

1,040,000 24.0% - 28.0%

20.17

21.38

0.23

0.76 x

First PacTrust Bancorp, Inc.

FPTB

12/30/2010

1/5/2011 11/21/2018

10.31

-

280,795

3.57

1,003,227 18.4% - 22.0%

13.01

12.60

0.27

1.26 x

National Penn Bancshares, Inc.

NPBC

4/8/2011

4/13/2011 12/12/2018

15.30

Yes

735,294

1.36

1,000,000 33.5% - 36.1%

7.96

7.73

0.17

0.52 x

MidWestOne Financial Group, Inc

MOFG

7/27/2011

2/6/2019

12.08

-

198,679

5.03

1,000,000 34.1% - 37.5%

14.50

14.20

0.35

1.20 x

Wesbanco, Inc.

WSBC

12/11/2009 12/23/2009

12/5/2018

25.61

-

439,282

2.16

950,000 38.1% - 40.7%

12.41

12.71

0.17

0.48 x

7/21/2011

WARRANT DISPOSITION REPORT – UPDATE JUNE 30, 2012

19

Warrant Repurchases Ordered by Amount of Proceeds
(continued)
Decision Date

Sterling Bancorp

STL

5/13/2011

5/18/2011 12/23/2018

12.19

QEO?
(i.e.
warrants
cut by
50%)
-

MutualFirst Financial, Inc.

MFSF

9/20/2011

9/28/2011 12/23/2018

7.77

-

6/12/2009

Institution Name

Decision
Ticker Date

Alliance Financial Corporation

ALNC

Flushing Financial Corporation

FFIC

Payment
Date

Expiration
Date

Strike
Price

Warrant
Final
Warrant Repurchase
Shares Price/Share

Warrant
Repurchase
Proceeds

Estimated
Implied
Volatility*

Stock
Price

20-day Warrant
Avg
Price /
Stock
Stock Underlying
/ Strike
Price
Price

516,817

1.83

945,775 30.9% - 33.5%

9.50

10.06

0.19

0.78 x

625,135

1.44

900,194 30.9% - 33.2%

7.03

7.52

0.20

0.90 x

6/17/2009 12/19/2018

23.33

-

173,069

5.20

900,000 13.8% - 17.0%

26.61

25.50

0.20

1.14 x

12/28/2009 12/30/2009 12/19/2018

13.97

Yes

375,806

2.39

900,000 22.4% - 25.9%

11.73

10.92

0.20

0.84 x

12/6/2011 12/21/2011 12/15/2018

0.42 x

First Midwest Bancorp, Inc.

FMBI

22.18

-

1,305,230

0.69

900,000 31.3% - 33.2%

9.29

9.16

0.07

AmeriServ Financial, Inc.

ASRV

10/27/2011

11/2/2011 12/19/2018

2.40

-

1,312,500

0.63

825,000 36.7% - 41.2%

1.86

1.89

0.34

0.78 x

Connecticut Bank and Trust Company

BHLB

4/16/2012

4/20/2012 12/19/2018

4.65

-

175,742

4.51

792,783 25.46% - 29.22 21.68

22.65

0.21

4.66 x

Wilshire Bancorp*

WIBC

6/11/2012

New Hampshire Thrift Bancshares, Inc.

NHTB

2/9/2012

6/20/2012 12/12/2018

9.82

-

949,460

0.80

760,000 36.5% - 38.8%

5.01

5.08

0.16

0.51 x

2/15/2012

8.14

-

184,275

4.00

737,100 23.6% - 26.1%

12.01

12.00

0.33

1.48 x

1/16/2019

West Bancorporation, Inc.

WTBA

8/23/2011

8/31/2011 12/31/2018

11.39

-

474,100

1.48

700,000 31.8% - 34.2%

8.44

8.91

0.17

0.74 x

HF Financial Corp.

HFFC

6/29/2009

6/30/2009 11/21/2018

12.40

-

302,419

2.15

650,000 18.3% - 21.5%

11.95

12.08

0.18

0.96 x

North Central Bancshares, Inc.

FFFD

1/4/2012

1/11/2012

1/9/2019

15.43

-

99,157

6.05

600,000 29.9% - 33.4%

17.70

17.80

0.34

1.15 x

First California Financial Group, Inc

FCAL

8/9/2011

8/24/2011 12/19/2018

6.26

-

599,042

1.00

599,042 45.2% - 48.4%

3.15

3.60

0.32

0.50 x

Wainwright Bank and Trust

WAIN

12/11/2009 12/16/2009 12/19/2018

8.46

-

390,071

1.46

568,700 27.8% - 30.7%

7.00

6.75

0.21

0.83 x

LSB Corporation

LSBX

12/8/2009 12/16/2009 12/12/2018

10.74

-

209,497

2.67

560,000 22.1% - 25.3%

11.28

11.00

0.24

1.05 x

Oak Valley Bancorp

OVLY

9/20/2011

9/28/2011

12/5/2018

5.78

-

350,346

1.60

560,000 35.5% - 38.6%

5.41

5.53

0.30

0.94 x

Pathfinder Bancorp, Inc.

PBHC

1/27/2012

2/1/2012

9/11/2019

6.58

-

154,354

3.48

537,633 24.6% - 28.8%

9.22

9.20

0.38

1.40 x

Codorus Valley Bancorp, Inc.

CVLY

9/13/2012

9/28/2011

1/9/2019

9.38

-

263,859

2.00

526,604 29.7% - 32.0%

9.11

9.89

0.22

0.97 x

Community Partners Bancorp

CPBC

10/18/2011 10/26/2011

1/30/2019

4.33

-

311,972

1.47

460,000 27.7% - 31.9%

4.62

4.68

0.32

1.07 x

DNB Financial Corporation

DNBF

1/30/2019

9.46

-

186,311

2.46

458,000 25.0% - 28.1%

9.85

10.11

0.25

1.04 x
0.57 x

8/31/2011

9/21/2011

Union Bankshares Corporation

UBSH

Heritage Financial Corporation

HFWA

12/16/2009 12/23/2009 12/19/2018
8/5/2011

20.94

Yes

211,318

2.13

450,000 30.3% - 33.0%

11.93

11.93

0.18

13.04

Yes

138,037

3.26

450,000 24.9% - 28.33% 12.57

12.87

0.26

OceanFirst Financial Corp

OCFC

1/28/2010

2/3/2010

0.96 x

1/16/2019

15.07

Yes

190,427

2.26

430,797 31.2% - 34.2%

10.45

10.97

0.22

0.69 x

9/1/2010

1/16/2019

20.36

-

194,794

2.05

400,000 41.9% - 44.4%

10.73

11.12

0.19

0.53 x

10/28/2011 11/16/2011

8/25/2010

3/13/2019

7.39

-

352,977

1.06

375,000 32.0% - 35.1%

4.60

4.57

0.23

0.62 x

7.49

7.45

0.16

1.19 x

5.99

6.26

0.22

1.12 x

8/17/2011 11/21/2018

Citizens & Northern Corporation

CZNC

First Northern Community Bancorp

FNRN

Central Jersey Bancorp

CJBK

12/1/2010

12/1/2010 12/23/2018

6.31

-

268,621

1.19

319,659

Summit State Bank

SSBI

9/8/2011

9/14/2011 12/19/2018

5.33

-

239,212

1.32

315,000 24.7% - 29.1%

Somerset Hills Bancorp

SOMH

6/17/2009

Monarch Financial Holdings

MNRK

2/1/2010

6/24/2009

N/A

1/16/2019

6.82

-

163,065

1.69

275,000 14.8% - 18.4%

7.80

7.73

0.22

1.14 x

2/10/2010 12/19/2018

8.33

Yes

132,353

1.96

260,000 27.8% - 32.4%

6.40

6.48

0.31

0.77 x
1.01 x

Bar Harbor Bankshares

BHB

7/22/2010

7/28/2010

1/16/2019

26.81

Yes

52,455

4.77

250,000 18.2% - 20.9%

27.00

25.61

0.18

Center Bancorp, Inc.

CNBC

11/22/2011

12/7/2011

1/9/2019

8.65

Yes

86,705

2.83

245,000 36.9% - 39.8%

9.31

9.54

0.30

1.08 x

Citizens South Banking Corporation

CSBC

11/2/2011

11/9/2011 12/19/2018

6.83

-

450,314

0.50

225,157 30.5% - 32.7%

3.97

3.97

0.13

0.58 x

Old Line Bancshares

OLBK

12/5/2018

7.40

-

141,892

1.59

225,000 26.3% - 30.1%

6.10

6.21

0.26

0.82 x

CenterState Banks, Inc.

CSFL

10/21/2009 10/28/2009 11/21/2018

16.67

Yes

125,413

1.69

212,000 34.9% - 38.2%

7.47

7.64

0.23

0.45 x

10/28/2011

11/2/2011

3/13/2019

22.93

-

57,671

3.55

205,000 21.7% - 23.8%

22.88

22.62

0.16

1.00 x

9/9/2011

9/28/2011

1/30/2019

6.64

Yes

79,067

2.34

185,017 37.8% - 42.4%

5.97

6.13

0.39

0.90 x

Salisbury Bancorp, Inc.

SAL

Central Valley Community Bancorp

CVCY

Bank of Commerce Holdings

BOCH

Peapack-Gladstone Financial Corporation

PGC

Stewardship Financial Corporation

SSFN

Manhattan Bancorp

MNHN

Seacoast Banking Corporation of Florida*

SBCF

Emclaire Financial Corp.

EMCF

Shore Bancshares, Inc.

SHBI

TOTAL

98

8/20/2009

9/2/2009

10/17/2011 10/26/2011 11/14/2019

6.29

-

405,405

0.31

125,000 33.9% - 35.7%

3.30

3.31

0.09

0.52 x

1/9/2019

28.63

-

150,296

0.73

110,000 26.5% - 28.2%

12.61

12.58

0.06

0.44 x

10/11/2011 10/26/2011

1/30/2019

11.24

-

133,475

0.80

107,398 42.5% - 44.7%

5.39

5.63

0.15

0.48 x

10/9/2009 10/14/2009

12/5/2018

8.65

-

29,480

2.15

63,364 29.7% - 34.8%

6.60

6.53

0.33

0.76 x

5/15/2012

5/30/2012 12/19/2018

6.36

Yes

589,623

0.09

55,000 39.8% - 41.5%

1.51

1.57

0.06

0.24 x

11/16/2011

12/7/2011 12/23/2018

22.45

-

50,111

1.02

51,113 22.8% - 24.5%

15.47

15.42

0.07

0.69 x

-

172,970

0.14

25,000 33.6% - 35.1%

4.97

4.88

0.03

0.23 x

3/26/2012

4/4/2012

11/2/2011 11/16/2011

1/9/2019

21.68

23

$3,743,008,150

*CPP preferred auction participant

WARRANT DISPOSITION REPORT – UPDATE JUNE 30, 2012

20

BAC
JPM
WFC
HIG
PNC
BAC
C
LNC
CMA
COF
C
WTFC
WBS
WFSL
SBNY
TCB
TCBI
BPFH
VLY
FFBC
SBIB
STI
STI
ASBC
24

Bank of America Corporation (TIP)
JPMorgan Chase & Co.
Wells Fargo & Company
The Hartford Financial Services Group, Inc.
PNC Financial Services
Bank of America Corporation (CPP)
Citigroup, Inc. (TIP/AGP)
Lincoln National Corporation
Comerica Inc.
Capital One Financial Corp.
Citigroup, Inc. (CPP)
Wintrust Financial Corporation
Webster Financial Corporation
Washington Federal, Inc
Signature Bank
TCF Financial Corporation
Texas Capital Bancshares, Inc.
Boston Private Financial Holdings, Inc.
Valley National Bancorp
First Financial Bancorp
Sterling Bancshares, Inc.
SunTrust Banks, Inc. (A Warrant)
SunTrust Banks, Inc. (B Warrant)
Associated Banc-Corp
TOTAL

3/1/2010
12/8/2009
5/18/2010
9/20/2010
4/27/2010
3/1/2010
1/24/2011
9/15/2010
5/4/2010
12/1/2009
1/24/2011
2/7/2011
6/1/2011
3/8/2010
3/8/2010
12/14/2009
3/8/2010
1/31/2011
5/17/2010
6/1/2010
6/7/2010
9/21/2011
9/21/2011
11/29/2011

Announce
Date
3/3/2010
12/10/2009
5/20/2010
9/21/2010
4/29/2010
3/3/2010
1/25/2011
9/16/2010
5/6/2010
12/3/2009
1/25/2011
2/8/2011
6/2/2011
3/9/2010
3/10/2010
12/15/2009
3/11/2010
2/1/2011
5/18/2010
6/2/2010
6/9/2010
9/22/2011
9/22/2011
11/30/2011

Auction
Date

Strike
Price

1/16/2019 $13.30
10/28/2018 42.42
10/28/2018 34.01
6/29/2019
9.79
12/13/2018 67.33
10/28/2018 30.79
1/4/2019 10.61
7/10/2019 10.92
11/14/2018 29.40
11/14/2018 42.13
10/28/2018 17.85
12/19/2018 22.82
11/21/2018 18.28
11/14/2018 17.57
12/12/2018 30.21
11/14/2018 16.93
1/16/2019 14.84
11/21/2018
8.00
11/14/2018 17.77
12/23/2010 12.90
12/12/2018
7.18
12/31/2018 33.70
11/14/2018 44.15
11/21/2018 19.77

Expiration
Date
150,375,940
88,401,697
110,262,688
52,093,973
16,885,192
121,792,790
255,033,142
13,049,451
11,479,592
12,657,960
210,084,034
1,643,295
3,282,726
1,707,456
595,829
3,199,988
758,086
2,887,500
2,532,542
465,117
2,615,557
6,008,902
11,891,280
3,983,308

Warrant
Shares
$8.35
10.75
7.70
13.70
19.20
2.55
1.01
16.60
16.00
11.75
0.26
15.80
6.30
9.15
19.00
3.00
8.85
2.20
2.20
6.70
1.15
2.70
1.20
0.90

Warrant
Auction
Price
Per Share
$1,255,639,099
950,318,243
849,014,998
713,687,430
324,195,686
310,571,615
257,583,473
216,620,887
183,673,472
148,731,030
54,621,849
25,964,061
20,678,339
15,623,222
11,320,751
9,599,964
6,709,061
6,352,500
5,571,592
3,116,284
3,007,891
16,224,035
14,269,536
3,584,977
$5,406,679,995

Warrant Auction
Gross Proceeds
0.51
0.26
0.27
0.59
0.29
0.16
0.21
0.67
0.39
0.32
0.05
0.48
0.32
0.47
0.49
0.23
0.48
0.32
0.15
0.42
0.23
0.16
0.07
0.09

1.23 x
0.97 x
0.84 x
2.37 x
0.98 x
0.53 x
0.45 x
2.26 x
1.41 x
0.88 x
0.27 x
1.46 x
1.09 x
1.10 x
1.28 x
0.78 x
1.24 x
0.87 x
0.83 x
1.23 x
0.70 x
0.50 x
0.38 x
0.53 x

20-day Warrant
Avg
Price /
Stock Underlying
Stock Stock
Price
Price Price
/ Strike

32.1% - 36.8% $16.37 $15.59
23.8% - 27.5% 41.27 42.24
30.6% - 34.0% 28.69 32.21
14.4% - 24.8% 23.16 21.68
27.6% - 31.3% 66.06 64.68
30.9% - 33.5% 16.37 15.59
34.8% - 37.9%
4.82
4.89
29.9% - 44.7% 24.72 23.84
28.6% - 32.3% 41.43 42.21
34.6% - 38.2% 36.92 38.66
31.9% - 33.7%
4.82
4.89
21.9% - 32.0% 33.24 32.96
28.2% - 32.1% 19.86 20.62
48.6% - 53.5% 19.38 19.41
23.1% - 29.0% 38.75 36.83
28.8% - 32.1% 13.22 12.78
24.4% - 29.9% 18.41 17.06
27.1% - 31.9%
6.98
6.66
25.1% - 27.5% 14.80 15.49
39.9% - 43.8% 15.87 16.81
30.1% - 34.2%
5.00
5.41
28.7% - 30.6% 16.89 18.92
30.0% - 32.3% 16.89 18.92
28.8% - 30.7% 10.40 10.52

Estimated
Implied
Volatilty*

Auction Date

*Volatility implied by the repurchase price using stock price on auction date and UST estimates for dividend yield and borrow cost; reflects discounts to a
modeled valuation for illiquidity, risk of cash takeout, etc.

Ticker

Institution Name

QEO?
(i.e.
warrants
cut by
50%)
Yes
1

Warrant Sales Ordered by Amount of Proceeds

WARRANT DISPOSITION REPORT – UPDATE JUNE 30, 2012

21

17

TOTAL

Announce
Date
11/15/2011
11/15/2011
11/15/2011
11/15/2011
11/15/2011
11/15/2011
11/15/2011
11/15/2011
11/15/2011
11/15/2011
11/15/2011
11/15/2011
11/15/2011
11/15/2011
11/15/2011
11/15/2011
11/15/2011

Auction
Date
11/17/2011
11/17/2011
11/17/2011
11/17/2011
11/17/2011
11/17/2011
11/17/2011
11/17/2011
11/17/2011
11/17/2011
11/17/2011
11/17/2011
11/17/2011
11/17/2011
11/17/2011
11/17/2011
11/17/2011

Expiration Strike
Date
Price
12/5/2018
$7.44
12/19/2018
17.67
12/5/2018
27.11
1/9/2019
15.82
2/13/2019
50.91
2/27/2019
21.20
1/9/2019
11.52
12/5/2018
14.01
1/9/2019
9.26
11/21/2018
13.34
2/20/2019
17.55
12/23/2018
7.77
1/30/2019
15.85
1/9/2019
14.37
12/19/2018
10.79
3/6/2019
13.07
11/21/2018
35.26

Estimated
Implied
Volatilty*
25.8% - 34.1%
61.8% - 66.4%
14.0% - 18.9%
28.6% - 33.9%
11.1% - 16.0%
12.6% - 15.9%
20.8% - 22.5%
20.8% - 22.4%
N/A
25.6% - 27.7%
26.2% - 27.9%
17.6% - 21.8%
24.7% - 27.4%
18.5% - 21.3%
19.1% - 20.9%
24.6% - 26.1%
28.3% - 29.8%
Stock
Price
$13.44
16.33
36.65
10.41
43.99
24.19
10.54
10.76
13.00
6.08
8.02
6.90
14.50
12.69
5.18
4.89
12.03

20-day Warrant
Avg
Price /
Stock
Stock Underlying
Price
Price
/ Strike
$13.48
0.54
1.81 x
16.59
0.51
0.92 x
35.33
0.30
1.35 x
11.20
0.14
0.66 x
44.51
0.08
0.86 x
23.82
0.18
1.14 x
10.38
0.10
0.91 x
11.53
0.16
0.77 x
12.98
0.21
1.40 x
6.33
0.09
0.46 x
8.19
0.05
0.46 x
6.52
0.20
0.89 x
14.54
0.20
0.91 x
13.13
0.16
0.88 x
5.22
0.03
0.48 x
5.01
0.02
0.37 x
12.09
0.03
0.34 x

Auction Date

*Volatility implied by the repurchase price using stock price on auction date and UST estimates for dividend yield and borrow cost; reflects discounts to a
modeled valuation for illiquidity, risk of cash takeout, etc.

Ticker
EGBN
HBNC
BMRC
FBNC
WABC
LKFN
FNB
EBTX
LCNB
WAL
FRME
FCCY
MBRG
MSL
COBZ
BUSE
FCBC

Institution Name
Eagle Bancorp, Inc.
Horizon Bancorp
Bank of Marin Bancorp
First BanCorp
Westamerica Bancorporation
Lakeland Financial Corp
F.N.B. Corporation
Encore Bancshares
LCNB Corporation
Western Alliance Bancorporation
First Merchants Corporation
1st Constitution Bancorp
Middleburg Financial Corporation
MidSouth Bancorp, Inc.
CoBiz Financial Inc.
First Busey Corporation
First Community Bancshares, Inc.

QEO?
Warrant
(i.e.
Auction
Warrant
warrants
Price
Auction
cut by Warrant
Shares Per Share Gross Proceeds
50%)
Yes
385,434
$7.25
$2,794,422
212,188
8.25
1,750,551
154,908
11.00
1,703,984
616,308
1.50
924,462
246,698
3.56
878,256
Yes
198,269
4.43
877,557
Yes
651,042
1.06
690,100
364,026
1.75
637,071
217,063
2.78
602,557
Yes
787,107
0.53
415,000
991,453
0.37
367,500
231,782
1.41
326,576
Yes
104,101
2.89
301,001
Yes
104,384
1.98
206,557
895,968
0.16
143,677
Yes
573,833
0.11
63,677
Yes
88,273
0.35
30,600
8
$12,713,548

Private Placement Sale of Warrants by Amount of Proceeds

WARRANT DISPOSITION REPORT – UPDATE JUNE 30, 2012

22

TCB
BAC
BAC
WFSL
SBNY
TCBI
PNC
CMA
VLY
WFC
FFBC
SBIB
LNC
HIG
C
C
BPFH
WTFC
WBS
STI
STI
ASBC

24

TCF Financial Corporation

Bank of America Corporation (TIP)

Bank of America Corporation (CPP)

Washington Federal, Inc

Signature Bank

Texas Capital Bancshares, Inc.

PNC Financial Services

Comerica Inc.

Valley National Bancorp

Wells Fargo & Company

First Financial Bancorp

Sterling Bancshares, Inc.

Lincoln National Corporation

Hartford Financial Services Group, Inc.

Citigroup (TIP/AGP)

Citigroup (CPP)

Boston Private Financial Holdings, Inc.

Wintrust Financial Corporation

Webster Financial Corporation

SunTrust Banks, Inc. (A Warrant)

SunTrust Banks, Inc. (B Warrant)

Associated Banc-Corp

TOTAL/AVERAGE

11/30/2011

9/22/2011

9/22/2011

6/2/2011

2/8/2011

2/1/2011

1/25/2011

1/25/2011

9/21/2010

9/16/2010

6/9/2010

6/2/2010

5/20/2010

5/18/2010

5/6/2010

4/29/2010

3/11/2010

3/10/2010

3/9/2010

3/3/2010

3/3/2010

12/15/2009

12/10/2009

12/3/2009

Auction
Date

3,983,308

11,891,280

6,008,902

3,282,276

1,643,295

2,887,500

210,084,034

255,033,142

52,093,973

13,049,451

2,615,557

465,117

110,261,688

2,532,542

11,479,592

16,885,192

758,086

595,829

1,707,456

121,792,790

150,375,940

3,199,988

88,401,697

12,657,960

Warrant
Shares

$5,406.68

3.58

14.27

16.22

20.68

25.96

6.35

54.62

257.58

713.69

216.62

3.01

3.12

849.01

5.57

183.67

324.20

6.71

11.32

15.62

310.57

1,255.64

9.60

950.32

$148.73

$72.10

0.15

0.20

0.23

0.29

0.36

0.15

0.76

3.32

7.42

2.95

0.15

0.15

8.64

0.15

2.57

3.92

0.15

0.17

0.23

4.66

18.83

0.15

14.25

$2.23

0.50

1.05

2.00

5.50

13.50

1.40

0.15

0.60

12.40

16.00

0.85

4.00

6.50

1.70

15.00

15.00

6.50

16.00

5.00

1.50

7.00

1.50

8.00

$7.50

Underwriting
Minimum
Fees
Bid
($millions)

0.90

1.20

2.70

6.30

15.80

2.20

0.26

1.01

13.70

16.60

1.15

6.70

7.70

2.20

16.00

19.20

8.85

19.00

9.15

2.55

8.35

3.00

10.75

$11.75

Clearing
Bid

612

134

119

155

144

340

369

1,064

1,557

635

795

211

142

859

183

518

1,450

326

409

708

1,246

1,489

470

754

604

189

23

30

45

30

64

89

398

472

87

204

67

66

297

34

120

181

61

68

413

570

535

135

381

174

5.44 x

5.77 x

2.57 x

3.70 x

3.90 x

7.00 x

7.93 x

4.25 x

5.20 x

2.03 x

5.06 x

6.92 x

10.32 x

3.86 x

6.59 x

2.67 x

5.47 x

6.99 x

8.22 x

14.52 x

10.67 x

4.40 x

18.25 x

6.47 x

13.27 x

Number Number
Coverage
of
of
1
Ratio
Bids Bidders

2.0%

0.4%

0.1%

1.5%

1.8%

1.6%

1.8%

3.4%

2.4%

4.2%

2.1%

3.6%

2.0%

2.3%

1.2%

1.9%

2.5%

0.9%

0.7%

8.3%

1.7%

1.0%

1.8%

0.3%

0.2%

Demand

2

Market
Orders
Share of

0

0

4,008,902

2,282,276

0

0

0

0

0

2,899,159

0

0

70,165,963

0

0

0

0

0

0

0

0

0

0

0

0.4%

0.1%

0.1%

0.4%

0.3%

0.1%

0.1%

0.2%

0.4%

0.3%

0.4%

0.3%

0.6%

0.4%

0.2%

0.0%

0.5%

0.1%

0.2%

0.2%

0.7%

0.5%

0.5%

0.4%

0.2%

Warrants
Daily
Repurchased
Liquidity
by Bank
3
in Auction Turnover

Note: Totals for Coverage Ratio, Market Orders and Daily Liquidity are weighted averages. Total for Number of Bidders is a simple average.
1) Coverage Ratio = Gross Demand / Warrant Shares
2) Market Orders Share of Auction = Total Market Orders / Gross Demand A market order is a bid that specifies the number of warrants the bidder is
willing to purchase without specifying the price it is willing to pay and is treated as a bid at the highest price received from any other bidder in the auction.
3) Daily Liquidity Turnover = Average Daily Trading Volume / Warrants Outstanding
The liquidity calculation excludes the first five trading days after the auction which typically have higher than normal volume and uses data through
December 30, 2011. The data source is Bloomberg.

COF
JPM

Capital One Financial Corp.

JPMorgan Chase & Co.

Ticker

Institution

Gross
Proceeds
($millions)

Warrant Auction Data

WARRANT DISPOSITION REPORT – UPDATE JUNE 30, 2012

23

Issuer Repurchases of Warrant Preferreds or Warrant Sub Debt

Institution Name
W.T.B. Financial Corporation
Plains Capital Corporation
Liberty Bancshares, Inc.
State Bankshares, Inc.
Stearns Financial Services, Inc.
Community Trust Financial Corporation
Liberty Bancshares, Inc.
BancIndependent, Inc.
First Guaranty Bancshares, Inc.
Community First Bancshares Inc.
A.N.B. Corporation
D.L. Evans Bancorp
Sovereign Bancshares, Inc.
Peoples Bancorp
First NBC Bank Holding Company
Stockmens Financial Corporation
Tri-County Financial Corporation
BankFirst Capital Corporation
Centra Financial Holdings, Inc.
The Landrum Company
Nicolet Bankshares, Inc.
Magna Bank
Sword Financial Corporation
First Texas BHC, Inc.
Morrill Bancshares, Inc.
Medallion Bank
Adbanc, Inc
Peoples Bancorporation, Inc.
Security State Bancshares
First Manitowoc Bancorp, Inc.
Two Rivers Financial Group
FNB Bancorp
Pacific Coast Bankers' Bancshares
Brotherhood Bancshares, Inc.
First Southern Bancorp, Inc.
Katahdin Bankshares Corp.
Midland States Bancorp, Inc.
1st United Bancorp, Inc.
BOH Holdings, Inc.
First Bankers Trustshares, Inc.
Northway Financial, Inc.
Penn Liberty Financial Corp.
Moneytree Corporation
Florida Business BancGroup, Inc.
FCB Bancorp, Inc.
UBT Bancshares, Inc.
GrandSouth Bancorporation
Equity Bancshares, Inc.
Georgia Commerce Bancshares, Inc.
Bancorp Financial, Inc.
Illinois State Bancorp
MS Financial, Inc.
Valley Commerce Bancorp
Regents Bancshares, Inc.
Centrix Bank & Trust
Gulfstream Bancshares, Inc.
Avenue Financial Holdings
Hamilton State Bancshares
Guaranty Bancorp, Inc.
Security California Bancorp
WashingtonFirst Bankshares, Inc.
Steele Street Bank Corporation
Cardinal Bancorp II, Inc.
OSB Financial Services, Inc.
Heritage Bankshares, Inc.
McLeod Bancshares, Inc.
American State Bancshares
Gateway Bancshares, Inc.
Beach Business Bank
Howard Bancorp, Inc.
TCB Corporation
Leader Bancorp, Inc.
Security Business Bancorp
Central Bancshares, Inc.
United Financial Banking Companies, Inc.
The Private Bank of California

Repurchase CPP Investment
($thousands)
Date
9/15/2011
$110,000
9/27/2011
87,631
7/21/2011
57,500
6/29/2011
50,000
1/18/2012
24,900
7/6/2011
24,000
8/18/2011
57,500
7/14/2011
21,100
9/22/2011
20,699
8/18/2011
20,000
8/25/2011
20,000
9/27/2011
19,891
9/22/2011
18,215
8/3/2011
18,000
8/4/2011
17,836
3/16/2011
15,568
9/22/2011
15,540
9/8/2011
15,500
4/15/2009
15,000
8/18/2011
15,000
9/1/2011
14,964
8/18/2011
13,795
9/15/2011
13,644
9/15/2011
13,533
7/20/2011
13,000
7/21/2011
9,698
7/21/2011
12,720
4/24/2012
12,660
9/22/2011
12,500
5/27/2009
12,000
9/1/2011
12,000
9/15/2011
12,000
7/28/2011
11,600
9/15/2011
11,000
6/16/2010
10,900
8/18/2011
10,449
12/23/2009
10,189
11/18/2009
10,000
7/14/2011
10,000
9/8/2011
10,000
9/15/2011
10,000
9/1/2011
9,960
9/15/2011
9,516
9/22/2011
9,495
9/22/2011
9,294
8/11/2011
8,950
9/8/2011
6,319
8/11/2011
8,750
2/16/2011
8,700
8/18/2011
13,669
9/22/2011
4,000
10/19/2011
7,723
3/21/2012
7,700
1/27/2012
12,700
7/28/2011
7,500
8/18/2011
7,500
9/15/2011
7,400
4/13/2011
7,000
9/15/2011
6,920
9/15/2011
6,815
8/4/2011
6,842
9/1/2011
11,019
9/8/2011
6,251
10/5/2011
6,100
8/11/2011
10,103
8/18/2011
6,000
11/2/2011
6,000
4/13/2012
6,000
6/27/2012
6,000
9/22/2011
5,983
9/8/2011
9,720
11/24/2010
5,830
7/14/2011
5,803
7/6/2011
5,800
9/15/2011
5,658
9/1/2011
5,450

Gross
Warrant
Warrant
Repurchase
Proceeds
Date
($thousands)
9/15/2011
$5,500
9/27/2011
4,382
7/21/2011
2,875
6/29/2011
2,500
1/18/2012
1,245
7/6/2011
1,200
8/18/2011
1,095
7/14/2011
1,055
9/22/2011
1,030
8/18/2011
1,000
8/25/2011
1,000
9/27/2011
995
9/22/2011
911
8/3/2011
900
8/4/2011
892
3/16/2011
778
9/22/2011
777
9/8/2011
775
4/15/2009
750
8/18/2011
750
9/1/2011
748
8/18/2011
690
9/15/2011
682
9/15/2011
677
7/20/2011
650
7/21/2011
645
7/21/2011
636
4/24/2012
633
9/22/2011
625
5/27/2009
600
9/1/2011
600
9/15/2011
600
7/28/2011
580
9/15/2011
550
6/16/2010
545
8/18/2011
522
12/23/2009
509
11/18/2009
500
7/14/2011
500
9/8/2011
500
9/15/2011
500
9/1/2011
498
9/15/2011
476
9/22/2011
475
9/22/2011
465
8/11/2011
450
9/8/2011
450
8/11/2011
438
2/16/2011
435
8/18/2011
410
9/22/2011
406
10/19/2011
386
3/21/2012
385
1/27/2012
381
7/28/2011
375
8/18/2011
375
9/15/2011
370
4/13/2011
350
9/15/2011
346
9/15/2011
341
8/4/2011
332
9/1/2011
331
9/8/2011
313
10/5/2011
305
8/11/2011
303
8/18/2011
300
11/2/2011
300
4/13/2012
300
6/27/2012
300
9/22/2011
299
9/8/2011
292
11/24/2010
292
7/14/2011
290
7/6/2011
290
9/15/2011
283
9/1/2011
273

WARRANT DISPOSITION REPORT – UPDATE JUNE 30, 2012

24

Issuer Repurchases of Warrant Preferreds or Warrant Sub Debt
(continued)

Institution Name
Catskill Hudson Bancorp, Inc
Financial Security Corporation
Southern Illinois Bancorp, Inc.
First Express of Nebraska Inc.
First ULB Corp.
York Traditions Bank
Southern Heritage Bancshares, Inc.
BNC Financial Group, Inc.
First Menasha Bancshares, Inc.
Cache Valley Banking Company
Monument Bank
Capital Bancorp, Inc.
Puget Sound Bank
First Colebrook Bancorp, Inc.
Mainline Bancorp, Inc.
1st Enterprise Bank
HillTop Community Bancorp, Inc.
SBT Bancorp, Inc.
Enterprise Financial Services Group, Inc.
SV Financial, Inc.
Grand Capital Corporation
California Bank of Commerce
Texas National Bancorporation
Redwood Capital Bancorp
Pascack Bancorp, Inc.
Triad Bancorp, Inc.
AMB Financial Corporation
Centric Financial Corporation
Merchants and Manufacturers Bank Corporation
Providence Bank
Mercantile Capital Corp.
First Bank of Charleston, Inc.
California Oaks State Bank
FPB Financial Corp
Union Bank & Trust Company
Highlands Bancorp, Inc.
Fortune Financial Corporation
Frontier Bancshares, Inc
Citizens Community Bank
Veritex Holdings, Inc.
Redwood Financial, Inc.
Customers Bancorp, Inc.
Regent Capital Corporation, Inc.
Deerfield Financial Corporation
First Resource Bank
AmeriBank Holding Company, Inc.
First Financial Bancshares, Inc.
Columbine Capital Corp.
Financial Services of Winger, Inc.
Titonka Bancshares, Inc.
Surrey Bancorp/Surrey Bank & Trust
Nationwide Bankshares, Inc.
TCNB Financial Corp
Merchants and Planters Bancshares, Inc.
American Premier Bancorp
Seacoast Commerce Bank
Signature Bancshares, Inc.
Birmingham Bloomfield Bancshares, Inc
PFSB Bancorporation, Inc.
First Commerce Bank*
Valley Financial Group, Ltd.
The Victory Bancorp, Inc.
State Bank of Bartley,The
Bern Bancshares, Inc.
Banner County Ban Corporation
Farmers State Bankshares, Inc.
First State Bank of Mobeetie
Midwest Regional Bancorp
Green City Bancshares, Inc.
Butler Point, Inc.
Colonial American Bank
Haviland Bancshares, Inc.
TOTAL

Repurchase CPP Investment
Date
($thousands)
7/21/2011
3,000
7/21/2011
5,000
8/25/2011
5,000
2/15/2012
5,000
4/22/2009
4,900
7/14/2011
4,871
9/8/2011
4,862
8/4/2011
4,797
9/15/2011
4,797
7/14/2011
4,640
8/11/2011
4,734
12/30/2010
4,700
8/11/2011
4,500
9/22/2011
4,500
3/9/2012
4,500
9/1/2011
6,000
4/21/2010
4,000
8/11/2011
4,000
8/25/2011
4,000
8/31/2011
4,000
9/8/2011
4,000
9/15/2011
4,000
5/19/2010
3,981
7/21/2011
3,800
10/19/2011
3,756
9/22/2011
3,700
9/22/2011
3,674
7/14/2011
6,056
9/8/2011
3,510
9/15/2011
4,000
8/4/2011
3,500
7/21/2011
3,345
12/8/2010
3,300
6/16/2010
3,240
9/22/2011
3,194
9/22/2011
5,450
9/15/2011
3,100
10/6/2010
3,000
7/28/2011
3,000
8/25/2011
3,000
8/18/2011
2,995
12/28/2011
2,892
7/21/2011
2,655
9/8/2011
2,639
9/15/2011
2,417
9/15/2011
2,492
9/22/2011
3,756
9/22/2011
2,260
9/1/2011
3,742
4/4/2012
2,117
12/29/2010
2,000
12/29/2010
2,000
8/3/2011
2,000
9/7/2011
1,881
1/26/2011
1,800
9/1/2011
1,800
12/15/2010
1,700
7/28/2011
1,635
8/25/2011
1,500
3/28/2012
2,571
9/22/2011
1,300
9/22/2011
1,505
9/22/2011
1,697
9/1/2011
985
7/28/2011
795
7/21/2011
700
4/14/2010
731
11/10/2009
700
7/14/2010
651
11/2/2011
607
10/26/2011
574
12/29/2010
425
148
$1,382,931

Gross
Warrant
Warrant
Repurchase
Proceeds
Date
($thousands)
7/21/2011
263
7/21/2011
250
8/25/2011
250
2/15/2012
250
4/22/2009
245
7/14/2011
244
9/8/2011
243
8/4/2011
240
9/15/2011
240
7/14/2011
238
8/11/2011
237
12/30/2010
235
8/11/2011
225
9/22/2011
225
3/9/2012
225
9/1/2011
220
4/21/2010
200
8/11/2011
200
8/25/2011
200
8/31/2011
200
9/8/2011
200
9/15/2011
200
5/19/2010
199
7/21/2011
190
10/19/2011
188
9/22/2011
185
9/22/2011
184
7/14/2011
182
9/8/2011
176
9/15/2011
175
8/4/2011
175
7/21/2011
167
12/8/2010
165
6/16/2010
162
9/22/2011
160
9/22/2011
155
9/15/2011
155
10/6/2010
150
7/28/2011
150
8/25/2011
150
8/18/2011
150
12/28/2011
145
7/21/2011
133
9/8/2011
132
9/15/2011
130
9/15/2011
125
9/22/2011
113
9/22/2011
113
9/1/2011
112
4/4/2012
106
12/29/2010
100
12/29/2010
100
8/3/2011
100
9/7/2011
94
1/26/2011
90
9/1/2011
90
12/15/2010
85
7/28/2011
82
8/25/2011
71
3/28/2012
67
9/22/2011
65
9/22/2011
61
9/22/2011
51
9/1/2011
50
7/28/2011
40
7/21/2011
40
4/14/2010
37
11/10/2009
35
7/14/2010
33
11/2/2011
30
10/26/2011
29
12/29/2010
21
$66,245

*Effective June 6, 2011, Northern State Bank changed its name to First Commerce Bank.

WARRANT DISPOSITION REPORT – UPDATE JUNE 30, 2012

25

Appendix II – Warrant Disposition Details

WARRANT DISPOSITION REPORT – UPDATE JUNE 30, 2012

26

Old National Bancorp (ONB)
Repurchase of ONB Warrant
On May 6, 2009, Old National Bancorp (ONB) agreed to pay $1.20 million for the warrant held by Treasury
which entitled the holder of the warrant to purchase 813,008 shares of ONB at a strike price of $18.45 per share.
The warrant had an expiration date of December 12, 2018.

$ Thousands
$3,500

Old National Bancshares (ONB)
Fair Market Value Estimates of US Treasury's Warrant Position

$3,000

$2,500

$2,000

$1,500
Final Bid - $1,200,000
$1,000
First Bid - $559,000
$500
Market Quotes

ONB
Valuation Estimates for Warrant
($ Thousands)

Third Party

Model Valuation

Low

High

Estimate

Details

Market Quotes

$1,220

$1,490

$1,353

Four market indications

Third Party

$1,969

$3,054

$3,054

Third party valuation estimates

Model Valuation

$1,070

$1,652

$1,326

Binomial option model adjusted for American style options

Note 1) At the time of the decision, the external asset managers had not been hired. Treasury relied on financial modeling consultants
to provide third party input. The modeling consultants may not have had market expertise necessary to make reasonable assumptions
for key inputs such as volatility and dividend yield. 2) At that time, legislation may have required that Treasury dispose of the
warrants immediately. The fixed cost of disposing of the warrants was taken into consideration when analyzing the company’s
determination of fair market value.

WARRANT DISPOSITION REPORT – UPDATE JUNE 30, 2012

27

IBERIABANK (IBKC)
Repurchase of IBKC Warrant
On May 12, 2009, IBERIABANK Corporation (IBKC) agreed to pay $1.20 million for the warrant held by
Treasury which entitled the holder of the warrant to purchase 138,490 shares of IBKC at a strike price of $48.74
per share. The warrant had an expiration date of December 5, 2018.

$ Thousands
$2,500

IBERIABANK Corporation (IBKC)
Fair Market Value Estimates of US Treasury's Warrant Position

$2,300
$2,100
$1,900
$1,700
$1,500
$1,300

Final Bid - $1,200,000

$1,100
$900
$700

First Bid - $620,000

$500
Market Quotes

IBKC
Valuation Estimates for Warrant
($ Thousands)

Third Party

Model Valuation

Low

High

Estimate

Details

Market Quotes

$1,350

$1,662

$1,566

Four market indications

Third Party

$1,370

$2,334

$2,334

Third party valuation estimates

Model Valuation

$1,156

$1,682

$1,421

Binomial option model adjusted for American style options

Note 1) At the time of the decision, the external asset managers had not been hired. Treasury relied on financial modeling consultants
to provide third party input. The modeling consultants may not have had market expertise necessary to make reasonable assumptions
for key inputs such as volatility and dividend yield. 2) At that time, legislation may have required that Treasury dispose of the
warrants immediately. The fixed cost of disposing of the warrants was taken into consideration when analyzing the company’s
determination of fair market value.

WARRANT DISPOSITION REPORT – UPDATE JUNE 30, 2012

28

Sun Bancorp, Inc. (SNBC)
Repurchase of SNBC Warrant
On May 19, 2009, Sun Bancorp, Inc. (SNBC) agreed to pay $2.10 million for the warrant held by Treasury
which entitled the holder of the warrant to purchase 1,620,545 shares of SNBC at a strike price of $8.27 per
share. The warrant had an expiration date of January 9, 2019.

$ Thousands

Sun Bancorp (SNBC)
Fair Market Value Estimates of US Treasury's Warrant Position

$4,300

$3,800

$3,300

$2,800

$2,300

Final Bid - $2,100,000

$1,800

$1,300
First Bid - $1,049,000
$800
Market Quotes

SNBC
Valuation Estimates for Warrant
($ Thousands)

Third Party

Model Valuation

Low

High

Estimate

Details

Market Quotes

$1,080

$2,778

$2,096

Four market indications

Third Party

$2,000

$4,028

$4,028

Third party valuation estimates

Model Valuation

$1,974

$2,771

$2,252

Binomial option model adjusted for American style options

Note 1) At the time of the decision, the external asset managers had not been hired. Treasury relied on financial modeling consultants
to provide third party input. The modeling consultants may not have had market expertise necessary to make reasonable assumptions
for key inputs such as volatility and dividend yield. 2) At that time, legislation may have required that Treasury dispose of the
warrants immediately. The fixed cost of disposing of the warrants was taken into consideration when analyzing the company’s
determination of fair market value.

WARRANT DISPOSITION REPORT – UPDATE JUNE 30, 2012

29

FirstMerit Corporation (FMER)
Repurchase of FMER Warrant
On May 21, 2009, FirstMerit Corporation (FMER) agreed to pay $5.03 million for the warrant held by Treasury
which entitled the holder of the warrant to purchase 952,260 shares of FMER at a strike price of $19.69 per
share. The warrant had an expiration date of January 9, 2019.

$ Thousands
$8,000

Firstmerit Corporation (FMER)
Fair Market Value Estimates of US Treasury's Warrant Position

$7,000

$6,000

Final Bid - $5,025,000

$5,000

$4,000
First Bid - $3,186,000
$3,000

$2,000
Market Quotes

FMER
Valuation Estimates for Warrant
($ Thousands)

Third Party

Model Valuation

Low

High

Estimate

Details

Market Quotes

$4,082

$6,543

$4,918

Four market indications

Third Party

$5,428

$7,532

$6,485

External asset manager's valuation estimates

Model Valuation

$4,871

$5,930

$5,400

Binomial option model adjusted for American style options

Note 1) At the time of the decision, the common share price of FMER was $17.54 compared to the 20-day average price of $19.27.
This difference was taken under consideration in Treasury’s analysis of the company’s determination of fair market value.

WARRANT DISPOSITION REPORT – UPDATE JUNE 30, 2012

30

Independent Bank Corp. (INDB)
Repurchase of INDB Warrant
On May 21, 2009, Independent Bank Corp. (INDB) agreed to pay $2.20 million for the warrant held by
Treasury which entitled the holder of the warrant to purchase 481,664 shares of INDB at a strike price of $24.34
per share. The warrant had an expiration date of January 9, 2019.

$ Thousands
$3,800

Independent Bank (INDB)
Fair Market Value Estimates of US Treasury's Warrant Position

$3,300

$2,800

$2,300

Final Bid - $2,200,000

$1,800

$1,300
First Bid - $880,000
$800
Market Quotes

INDB
Valuation Estimates for Warrant
($ Thousands)

Third Party

Model Valuation

Low

High

Estimate

Details

Market Quotes

$1,444

$2,432

$2,104

Three market indications

Third Party

$2,293

$3,482

$2,885

External asset manager's valuation estimates

Model Valuation

$1,754

$2,965

$2,345

Binomial option model adjusted for American style options

WARRANT DISPOSITION REPORT – UPDATE JUNE 30, 2012

31

Alliance Financial Corporation (ALNC)
Repurchase of ALNC Warrant
On June 12, 2009, Alliance Financial Corporation (ALNC) agreed to pay $900,000 for the warrant held by
Treasury which entitled the holder of the warrant to purchase 173,069 shares of ALNC at a strike price of
$23.33 per share. The warrant had an expiration date of December 19, 2018.

$ Thousands
$1,300

Alliance Financial (ALNC)
Fair Market Value Estimates of US Treasury's Warrant Position

$1,200
$1,100
$1,000
Final Bid - $900,000

$900
$800
$700
$600
$500
$400
First Bid - $320,000
$300
Market Quotes

ALNC
Valuation Estimates for Warrant
($ Thousands)

Third Party

Model Valuation

Low

High

Estimate

Details

Market Quotes

$554

$952

$762

Three market indications

Third Party

$899

$1,244

$990

External asset manager's valuation estimates

Model Valuation

$741

$895

$818

Binomial option model adjusted for American style options

WARRANT DISPOSITION REPORT – UPDATE JUNE 30, 2012

32

SCBT Financial Corporation (SCBT)
Repurchase of SCBT Warrant
On June 16, 2009, SCBT Financial Corporation (SCBT) agreed to pay $1.40 million for the warrant held by
Treasury which entitled the holder of the warrant to purchase 303,083 shares of SCBT at a strike price of
$32.06 per share. The warrant had an expiration date of January 16, 2019.

$ Thousands
$3,500

SCBT Financial (SCBT)
Fair Market Value Estimates of US Treasury's Warrant Position

$3,000

$2,500

$2,000

$1,500

Final Bid - $1,400,000

$1,000
First Bid - $694,060
$500
Market Quotes

SCBT
Valuation Estimates for Warrant
($ Thousands)

Third Party

Model Valuation

Low

High

Estimate

Details

$555

$1,789

$1,159

Five market indications

Third Party

$2,322

$3,261

$2,888

External asset manager's valuation estimates

Model Valuation

$1,137

$1,436

$1,281

Binomial option model adjusted for American style options

Market Quotes

Note 1) The third party modeled valuation assumed volatility of 46 percent. Treasury’s model assumed a significantly lower volatility
closer to the historic volatility of the company and observable market prices.

WARRANT DISPOSITION REPORT – UPDATE JUNE 30, 2012

33

Berkshire Hills Bancorp (BHLB)
Repurchase of BHLB Warrant
On June 17, 2009, Berkshire Hills Bancorp (BHLB) agreed to pay $1.04 million for the warrant held by
Treasury which entitled the holder of the warrant to purchase 226,330 shares of BHLB at a strike price of
$26.51 per share. The warrant had an expiration date of December 19, 2018.

Berkshire Hills (BHLB)
Fair Market Value Estimates of US Treasury's Warrant Position
$ Thousands
$2,100
$1,900
$1,700
$1,500
$1,300
$1,100

Final Bid - $1,040,000
First Bid - $875,000

$900
$700
$500
Market Quotes

BHLB
Valuation Estimates for Warrant
($ Thousands)
Market Quotes
Third Party
Model Valuation

Third Party

Low

High

Estimate

$509

$758

$611

$1,071

$1,974

$1,494

$827

$1,116

$971

Model Valuation

Details
Three market indications
External asset manager's valuation estimates
Binomial option model adjusted for American style options

WARRANT DISPOSITION REPORT – UPDATE JUNE 30, 2012

34

Somerset Hills Bancorp (SOMH)
Repurchase of SOMH Warrant
On June 17, 2009, Somerset Hills Bancorp (SOMH) agreed to pay $275,000 for the warrant held by Treasury
which entitled the holder of the warrant to purchase 163,065 shares of SOMH at a strike price of $6.82 per
share. The warrant had an expiration date of January 16, 2019.

$ Thousands
$600

Somerset Hills (SOMH)
Fair Market Value Estimates of US Treasury's Warrant Position

$550
$500
$450
$400
$350
$300

Final Bid - $275,000

$250
First Bid - $193,000

$200
$150
$100
Market Quotes

SOMH
Valuation Estimates for Warrant
($ Thousands)

Third Party

Model Valuation

Low

High

Estimate

Details

Market Quotes

$122

$406

$266

Five market indications

Third Party

$374

$521

$447

External asset manager's valuation estimates

Model Valuation

$253

$299

$276

Binomial option model adjusted for American style options

WARRANT DISPOSITION REPORT – UPDATE JUNE 30, 2012

35

First Niagara Financial Group (FNFG)
Repurchase of FNFG Warrant
On June 19, 2009, First Niagara Financial Group (FNFG) agreed to pay $2.70 million for the warrant held by
Treasury which entitled the holder of the warrant to purchase 953,096 shares of FNFG at a strike price of
$14.48 per share. The warrant had an expiration date of November 21, 2018.

First Niagara (FNFG)
Fair Market Value Estimates of US Treasury's Warrant Position
$ Thousands
$5,400
$4,900
$4,400
$3,900
$3,400
$2,900

Final Bid - $2,700,000

$2,400
$1,900
First Bid - $1,500,000
$1,400
$900
Market Quotes

FNFG
Valuation Estimates for Warrant
($ Thousands)

Third Party

Model Valuation

Low

High

Estimate

Details

$953

$2,383

$1,646

Five market indications

Third Party

$3,455

$4,995

$4,221

External asset manager's valuation estimates

Model Valuation

$2,444

$3,175

$2,807

Binomial option model adjusted for American style options

Market Quotes

WARRANT DISPOSITION REPORT – UPDATE JUNE 30, 2012

36

HF Financial Corp. (HFFC)
Repurchase of HFFC Warrant
On June 29, 2009, HF Financial Corp. (HFFC) agreed to pay $650,000 for the warrant held by Treasury which
entitled the holder of the warrant to purchase 302,419 shares of HFFC at a strike price of $12.40 per share. The
warrant had an expiration date of November 21, 2018.

$ Thousands
$900

HF Financial (HFFC)
Fair Market Value Estimates of US Treasury's Warrant Position

$800

$700
Final Bid - $650,000
Second Bid - $600,000

$600

$500

First Bid - $464,987

$400

$300

$200
Market Quotes

HFFC
Valuation Estimates for Warrant
($ Thousands)

Third Party

Model Valuation

Low

High

Estimate

Details

Market Quotes

$251

$720

$424

Three market indications

Third Party

$686

$822

$753

External asset manager's valuation estimates

Model Valuation

$505

$622

$563

Binomial option model adjusted for American style options

WARRANT DISPOSITION REPORT – UPDATE JUNE 30, 2012

37

State Street Corporation (STT)
Repurchase of STT Warrant
On July 1, 2009, State Street Corporation (STT) agreed to pay $60.00 million for the warrant held by Treasury
which entitled the holder of the warrant to purchase 2,788,104 shares of STT at a strike price of $53.80 per
share. The warrant had an expiration date of October 28, 2018.

$ Thousands
$80,000

State Street (STT)
Fair Market Value Estimates of US Treasury's Warrant Position

$70,000
Final Bid - $60,000,000

$60,000

$50,000

$40,000

$30,000

$20,000

$10,000
Third Party

Market Quotes

STT
Valuation Estimates for Warrant
($ Thousands)

Model Valuation

Low

High

Estimate

Details

Market Quotes

$15,557

$48,400

$33,138

Seven market indications

Third Party

$46,087

$64,796

$55,344

External asset manager's valuation estimates

Model Valuation

$51,836

$61,612

$56,698

Binomial option model adjusted for American style options

WARRANT DISPOSITION REPORT – UPDATE JUNE 30, 2012

38

U.S. Bancorp (USB)
Repurchase of USB Warrant
On July 8, 2009, U.S. Bancorp (USB) agreed to pay $139.00 million for the warrant held by Treasury which
entitled the holder of the warrant to purchase 32,679,102 shares of USB at a strike price of $30.29 per share.
The warrant had an expiration date of November 14, 2018.

US Bancorp (USB)
Fair Market Value Estimates of US Treasury's Warrant Position
$ Thousands
$191,000
$171,000
$151,000

Final Bid - $139,000,000

$131,000
First Bid - $115,000,000

Second Bid - $131,000,000

$111,000
$91,000
$71,000
$51,000
$31,000
$11,000
Third Party

Market Quotes

USB
Valuation Estimates for Warrant
($ Thousands)

Model Valuation

Low

High

Estimate

Details

Market Quotes

$12,091

$174,833

$127,122

Six market indications

Third Party

$107,514

$182,676

$144,442

External asset manager's valuation estimates

Model Valuation

$117,451

$164,038

$140,485

Binomial option model adjusted for American style options

WARRANT DISPOSITION REPORT – UPDATE JUNE 30, 2012

39

BB&T Corporation (BBT)
Repurchase of BBT Warrant
On July 14, 2009, BB&T Corporation (BBT) agreed to pay $67.01 million for the warrant held by Treasury
which entitled the holder of the warrant to purchase 13,902,573 shares of BBT at a strike price of $33.81 per
share. The warrant had an expiration date of November 14, 2018.

$ Thousands

BB&T Corporation (BBT)
Fair Market Value Estimates of US Treasury's Warrant Position

$88,000

$78,000
Final Bid - $67,000,000

$68,000
Third Bid - $64,900,000
$58,000

$48,000
Second Bid - $41,700,000
$38,000

$28,000
First Bid - $20,854,000
$18,000
Third Party

Market Quotes

BBT
Valuation Estimates for Warrant
($ Thousands)

Model Valuation

Low

High

Estimate

Details

Market Quotes

$22,939

$57,974

$36,341

Five market indications

Third Party

$42,681

$81,747

$61,588

External asset manager's valuation estimates

Model Valuation

$55,000

$78,000

$67,000

Binomial option model adjusted for American style options

WARRANT DISPOSITION REPORT – UPDATE JUNE 30, 2012

40

Goldman Sachs Group, Inc. (GS)
Repurchase of GS Warrant
On July 21, 2009, Goldman Sachs Group, Inc. (GS) agreed to pay $1.10 billion for the warrant held by Treasury
which entitled the holder of the warrant to purchase 12,205,045 shares of GS at a strike price of $122.90 per
share. The warrant had an expiration date of October 28, 2018.

Goldman Sachs (GS)
Fair Market Value Estimates of US Treasury's Warrant Position
$ Thousands
$1,150,000
Final Bid - $1,100,000,000
$1,050,000

$950,000
Second Bid - $900,000,000
$850,000

$750,000

$650,000
First Bid - $600,000,000
$550,000
Market Quotes

GS
Valuation Estimates for Warrant
($ Thousands)

Third Party

Model Valuation

Low

High

Estimate

Details

Market Quotes

$732,000

$917,000

$826,000

Seven market indications

Third Party

$899,000

$1,058,000

$993,000

External asset manager's valuation estimates

Model Valuation

$808,000

$995,000

$902,000

Binomial option model adjusted for American style options

Note 1) At the time of the decision, the common share price of GS was $159.80 compared to the 20-day average price of $148.16.
This difference was taken under consideration in Treasury’s analysis of the company’s determination of fair market value.

WARRANT DISPOSITION REPORT – UPDATE JUNE 30, 2012

41

American Express Company (AXP)
Repurchase of AXP Warrant
On July 27, 2009, American Express Company (AXP) agreed to pay $340.00 million for the warrant held by
Treasury which entitled the holder of the warrant to purchase 24,264,129 shares of AXP at a strike price of
$20.95 per share. The warrant had an expiration date of January 9, 2019.

$ Thousands
$450,000

American Express (AXP)
Fair Market Value Estimates of US Treasury's Warrant Position

$400,000

$350,000

Final Bid - $340,000,000

$300,000
Second Bid - $260,000,000
$250,000
First Bid - $230,000,000
$200,000

$150,000
Third Party

Market Quotes

AXP
Valuation Estimates for Warrant
($ Thousands)

Model Valuation

Low

High

Estimate

Details

Market Quotes

$175,400

$298,200

$218,700

Six market indications

Third Party

$269,384

$349,049

$309,000

External asset manager's valuation estimates

Model Valuation

$248,200

$321,600

$284,700

Binomial option model adjusted for American style options

WARRANT DISPOSITION REPORT – UPDATE JUNE 30, 2012

42

Bank of New York Mellon Corporation (BK)
Repurchase of BK Warrant
On July 31, 2009, Bank of New York Mellon Corporation (BK) agreed to pay $136.00 million for the warrant
held by Treasury which entitled the holder of the warrant to purchase 14,516,129 shares of BK at a strike price
of $31.00 per share. The warrant had an expiration date of October 28, 2018.

$ Thousands

Bank of New York Mellon (BK)
Fair Market Value Estimates of US Treasury's Warrant Position

$165,000

$145,000
Final Bid - $136,000,000
Third Bid - $130,000,000

$125,000

Second Bid - $118,000,000

$105,000

$85,000
First Bid - $79,000,000
$65,000

$45,000
Third Party

Market Quotes

BK
Valuation Estimates for Warrant
($ Thousands)

Model Valuation

Low

High

Estimate

Details

Market Quotes

$55,000

$137,000

$94,000

Seven market indications

Third Party

$108,400

$164,100

$136,100

External asset manager's valuation estimates

Model Valuation

$109,500

$161,600

$135,200

Binomial option model adjusted for American style options

WARRANT DISPOSITION REPORT – UPDATE JUNE 30, 2012

43

Morgan Stanley (MS)
Repurchase of MS Warrant
On August 5, 2009, Morgan Stanley (MS) agreed to pay $950.00 million for the warrant held by Treasury
which entitled the holder of the warrant to purchase 65,245,759 shares of MS at a strike price of $22.99 per
share. The warrant had an expiration date of October 28, 2018.

$ Thousands
$1,100,000

Morgan Stanley (MS)
Fair Market Value Estimates of US Treasury's Warrant Position

$1,000,000
Final Bid - $950,000,000
Third Bid - $900,000,000

$900,000

Second Bid - $800,000,000
$800,000

$700,000

$600,000
First Bid - $500,000,000
$500,000

$400,000
Third Party

Market Quotes

MS
Valuation Estimates for Warrant
($ Thousands)

Model Valuation

Low

High

Estimate

Details

Market Quotes

$495,000

$944,000

$731,000

Seven market indications

Third Party

$806,000

$1,002,000

$900,000

External asset manager's valuation estimates

Model Valuation

$749,915

$961,658

$855,218

Binomial option model adjusted for American style options

Note 1) At the time of the decision, the common share price of MS was $31.05 compared to the 20-day average price of $28.16. This
difference was taken under consideration in Treasury’s analysis of the company’s determination of fair market value.

WARRANT DISPOSITION REPORT – UPDATE JUNE 30, 2012

44

Northern Trust Corporation (NTRS)
Repurchase of NTRS Warrant
On August 19, 2009, Northern Trust Corporation (NTRS) agreed to pay $87.00 million for the warrant held by
Treasury which entitled the holder of the warrant to purchase 3,824,624 shares of NTRS at a strike price of
$61.81 per share. The warrant had an expiration date of November 14, 2018.

$ Thousands
$120,000

Northern Trust (NTRS)
Fair Market Value Estimates of US Treasury's Warrant Position

$110,000
$100,000
Final Bid - $87,000,000

$90,000
$80,000

Second Bid - $75,000,000

$70,000
$60,000
$50,000
$40,000

First Bid - $37,000,000

$30,000
Third Party

Market Quotes

NTRS
Valuation Estimates for Warrant
($ Thousands)

Model Valuation

Low

High

Estimate

Details

Market Quotes

$53,500

$79,700

$68,760

Six market indications

Third Party

$71,000

$101,000

$86,000

External asset manager's valuation estimates

Model Valuation

$70,800

$96,700

$83,800

Binomial option model adjusted for American style options

WARRANT DISPOSITION REPORT – UPDATE JUNE 30, 2012

45

Old Line Bancshares, Inc. (OLBK)
Repurchase of OLBK Warrant
On August 20, 2009, Old Line Bancshares, Inc. (OLBK) agreed to pay $225,000 for the warrant held by
Treasury which entitled the holder of the warrant to purchase 141,892 shares of OLBK at a strike price of $7.40
per share. The warrant had an expiration date of December 5, 2018.

Old Line Bancshares (OLBK)
Fair Market Value Estimates of US Treasury's Warrant Position
$ Thousands
$360

$310

$260
Final Bid - $225,000
$210
Second Bid - $205,000
First Bid - $175,000

$160

$110

$60

$10
Market Quotes

OLBK
Valuation Estimates for Warrant
($ Thousands)

Third Party

Model Valuation

Low

High

Estimate

Details

Market Quotes

$28

$167

$102

Four market indications

Third Party

$201

$308

$254

External asset manager's valuation estimates

Model Valuation

$172

$257

$214

Binomial option model adjusted for American style options

WARRANT DISPOSITION REPORT – UPDATE JUNE 30, 2012

46

Bancorp Rhode Island, Inc. (BARI)
Repurchase of BARI Warrant
On September 21, 2009, Bancorp Rhode Island, Inc. (BARI) agreed to pay $1.40 million for the warrant held by
Treasury which entitled the holder of the warrant to purchase 192,967 shares of BARI at a strike price of $23.32
per share. The warrant had an expiration date of December 19, 2018.

Bancorp Rhode Island (BARI)
Fair Market Value Estimates of US Treasury's Warrant Position
$ Thousands
$1,800

$1,600
Final Bid - $1,400,000
$1,400

$1,200

Second Bid - $1,125,000

$1,000

First Bid - $856,773

$800

$600
Market Quotes

BARI
Valuation Estimates for Warrant
($ Thousands)

Third Party

Model Valuation

Low

High

Estimate

Details

$703

$1,427

$1,166

Three market indications

Third Party

$1,196

$1,760

$1,476

External asset manager's valuation estimates

Model Valuation

$1,200

$1,643

$1,423

Binomial option model adjusted for American style options

Market Quotes

WARRANT DISPOSITION REPORT – UPDATE JUNE 30, 2012

47

Manhattan Bancorp (MNHN)
Repurchase of MNHN Warrant
On October 9, 2009, Manhattan Bancorp (MNHN) agreed to pay $63,364 for the warrant held by Treasury
which entitled the holder of the warrant to purchase 29,480 shares of MNHN at a strike price of $8.65 per share.
The warrant had an expiration date of December 5, 2018.

$ Thousands

Manhattan Bancorp (MNHN)
Fair Market Value Estimates of US Treasury's Warrant Position

$78

$68

Final Bid - $63,364

$58

$48

$38

$28

$18

$8
Market Quotes

MNHN
Valuation Estimates for Warrant
($ Thousands)

Third Party

Model Valuation

Low

High

Estimate

Details

Market Quotes

$10

$57

$34

Two market indications

Third Party

$45

$54

$50

External asset manager's valuation estimates

Model Valuation

$48

$64

$56

Binomial option model adjusted for American style options

WARRANT DISPOSITION REPORT – UPDATE JUNE 30, 2012

48

CenterState Banks, Inc. (CSFL)
Repurchase of CSFL Warrant
On October 20, 2009, CenterState Banks, Inc. (CSFL) agreed to pay $212,000 for the warrant held by Treasury
which entitled the holder of the warrant to purchase 125,413 shares of CSFL at a strike price of $16.67 per
share. The warrant had an expiration date of November 21, 2018.

$ Thousands

Centerstate Banks of Florida (CSFL)
Fair Market Value Estimates of US Treasury's Warrant Position

$290

$240
Final Bid - $212,000

$190
First Bid - $168,053

$140

$90
Market Quotes

CSFL
Valuation Estimates for Warrant
($ Thousands)

Third Party

Model Valuation

Low

High

Estimate

Details

Market Quotes

$94

$143

$125

Three market indications

Third Party

$159

$268

$236

External asset manager's valuation estimates

Model Valuation

$153

$269

$206

Binomial option model adjusted for American style options

WARRANT DISPOSITION REPORT – UPDATE JUNE 30, 2012

49

CVB Financial Corp. (CVBF)
Repurchase of CVBF Warrant
On October 21, 2009, CVB Financial Corp. (CVBF) agreed to pay $1.31 million for the warrant held by
Treasury which entitled the holder of the warrant to purchase 834,761 shares of CVBF at a strike price of
$11.68 per share. The warrant had an expiration date of December 5, 2018.

$ Thousands
$1,800

CVB Financial (CVBF)
Fair Market Value Estimates of US Treasury's Warrant Position

$1,600

$1,400
Final Bid - $1,307,000
$1,200
First Bid - $1,002,000

$1,000

$800

$600

$400
Market Quotes

CVBF
Valuation Estimates for Warrant
($ Thousands)

Third Party

Model Valuation

Low

High

Estimate

Details

Market Quotes

$551

$1,135

$917

Third Party

$785

$1,436

$1,110

External asset manager's valuation estimates

Model Valuation

$993

$1,711

$1,349

Binomial option model adjusted for American style options

Three market indications

WARRANT DISPOSITION REPORT – UPDATE JUNE 30, 2012

50

Bank of the Ozarks, Inc. (OZRK)
Repurchase of OZRK Warrant
On November 18, 2009, Bank of the Ozarks, Inc. (OZRK) agreed to pay $2.65 million for the warrant held by
Treasury which entitled the holder of the warrant to purchase 379,811 shares of OZRK at a strike price of
$29.62 per share. The warrant had an expiration date of December 12, 2018.

$ Thousands

Bank of the Ozarks (OZRK)
Fair Market Value Estimates of US Treasury's Warrant Position

$3,500

$3,000
Final Bid - $2,650,000
$2,500
First Bid - $2,160,743
$2,000

$1,500

$1,000
Market Quotes

OZRK
Valuation Estimates for Warrant
($ Thousands)

Third Party

Model Valuation

Low

High

Estimate

Details

Market Quotes

$1,230

$3,240

$2,210

Three market indications

Third Party

$1,880

$3,110

$2,480

External asset manager's valuation estimates

Model Valuation

$1,917

$3,095

$2,509

Binomial option model adjusted for American style options

WARRANT DISPOSITION REPORT – UPDATE JUNE 30, 2012

51

LSB Corporation (LSBX)
Repurchase of LSBX Warrant
On December 8, 2009, LSB Corporation (LSBX) agreed to pay $560,000 for the warrant held by Treasury
which entitled the holder of the warrant to purchase 209,497 shares of LSBX at a strike price of $10.74 per
share. The warrant had an expiration date of December 12, 2018.

$ Thousands
$1,000

LSB Corporation (LSBX)
Fair Market Value Estimates of US Treasury's Warrant Position

$900
$800
$700
$600

Final Bid - $560,000

$500

First Bid - $500,000

$400
$300
$200
$100
Market Quotes

LSBX
Valuation Estimates for Warrant
($ Thousands)

Third Party

Model Valuation

Low

High

Estimate

Details

Market Quotes

$157

$883

$446

Four market indications

Third Party

$486

$773

$605

External asset manager's valuation estimates

Model Valuation

$459

$681

$569

Binomial option model adjusted for American style options

WARRANT DISPOSITION REPORT – UPDATE JUNE 30, 2012

52

Wainwright Bank of Trust Company (WAIN)
Repurchase of WAIN Warrant
On December 11, 2009, Wainwright Bank of Trust Company (WAIN) agreed to pay $568,700 for the warrant
held by Treasury which entitled the holder of the warrant to purchase 390,071 shares of WAIN at a strike price
of $8.46 per share. The warrant had an expiration date of December 19, 2018.

$ Thousands
$800

Wainwright Bank and Trust (WAIN)
Fair Market Value Estimates of US Treasury's Warrant Position

$700

$600
Final Bid - $568,700
$500

$400

$300

$200
Market Quotes

WAIN
Valuation Estimates for Warrant
($ Thousands)

Third Party

Model Valuation

Low

High

Estimate

Details

Market Quotes

$289

$780

$532

Four market indications

Third Party

$491

$776

$632

External asset manager's valuation estimates

Model Valuation

$449

$632

$541

Binomial option model adjusted for American style options

WARRANT DISPOSITION REPORT – UPDATE JUNE 30, 2012

53

WesBanco, Inc. (WSBC)
Repurchase of WSBC Warrant
On December 11, 2009, WesBanco, Inc. (WSBC) agreed to pay $950,000 for the warrant held by Treasury
which entitled the holder of the warrant to purchase 439,282 shares of WSBC at a strike price of $25.61 per
share. The warrant had an expiration date of December 5, 2018.

$ Thousands
$1,400

WesBanco, Inc. (WSBC)
Fair Market Value Estimates of US Treasury's Warrant Position

$1,200

$1,000

Final Bid - $950,000
First Bid - $500,000

$800

$600

$400

$200

$0
Third Party

Market Quotes

WSBC
Valuation Estimates for Warrant
($ Thousands)

Model Valuation

Low

High

Estimate

Details

Market Quotes

$132

$1,204

$577

Four market indications

Third Party

$371

$955

$643

External asset manager's valuation estimates

Model Valuation

$585

$1,119

$851

Binomial option model adjusted for American style options

WARRANT DISPOSITION REPORT – UPDATE JUNE 30, 2012

54

Union Bankshares Corporation (UBSH)
Repurchase of UBSH Warrant
On December 16, 2009, Union Bankshares Corporation (UBSH) agreed to pay $450,000 for the warrant held by
Treasury which entitled the holder of the warrant to purchase 211,318 shares of UBSH at a strike price of
$20.94 per share. The warrant had an expiration date of December 19, 2018.

$ Thousands

Union Bankshares (UBSH)
Fair Market Value Estimates of US Treasury's Warrant Position

$800

$700

$600

$500

Final Bid - $450,000

$400
First Bid - $400,000
$300

$200

$100
Market Quotes

UBSH
Valuation Estimates for Warrant
($ Thousands)

Third Party

Model Valuation

Low

High

Estimate

Details

Market Quotes

$188

$687

$448

Four market indications

Third Party

$267

$595

$424

External asset manager's valuation estimates

Model Valuation

$279

$564

$410

Binomial option model adjusted for American style options

WARRANT DISPOSITION REPORT – UPDATE JUNE 30, 2012

55

Flushing Financial Corporation (FFIC)
Repurchase of FFIC Warrant
On December 28, 2009, Flushing Financial Corporation (FFIC) agreed to pay $900,000 for the warrant held by
Treasury which entitled the holder of the warrant to purchase 375,806 shares of FFIC at a strike price of $13.97
per share. The warrant had an expiration date of December 19, 2018.

$ Thousands
$1,400

Flushing Financial (FFIC)
Estimates of Fair Market Value for US Treasury's Warrant Position

$1,300
$1,200
$1,100
$1,000
Final Bid - $900,000
$900
Third Bid - $860,000

$800
$700

Second Bid - $700,000

$600

First Bid - $597,000

$500
$400
$300
Third Party

Market Quotes

FFIC
Valuation Estimates for Warrant
($ Thousands)

Low

High

Estimate

Market Quotes

$459

$1,240

$742

Third Party

$883

$1,131

$1,007

Model Valuation

$623

$1,090

$850

Model Valuation

Details
Three market indications
External asset manager's valuation estimates
Binomial option model adjusted for American style options

WARRANT DISPOSITION REPORT – UPDATE JUNE 30, 2012

56

Trustmark Corporation (TRMK)
Repurchase of TRMK Warrant
On December 29, 2009, Trustmark Corporation (TRMK) agreed to pay $10.00 million for the warrant held by
Treasury which entitled the holder of the warrant to purchase 1,647,931 shares of TRMK at a strike price of
$19.57 per share. The warrant had an expiration date of November 21, 2018.

$ Thousands

Trustmark Corporation (TRMK)
Estimates of Fair Market Value of US Treasury's Warrant Position

$13,000
$12,000
$11,000
Final Bid - $10,000,000

$10,000

Third Bid - $9,600,000

$9,000

Second Bid - $9,200,000

$8,000

First Bid - $8,167,000

$7,000
$6,000
$5,000
$4,000
$3,000
Third Party

Market Quotes

TRMK
Valuation Estimates for Warrant
($ Thousands)

Model Valuation

Low

High

Estimate

Details

Market Quotes

$4,120

$10,547

$7,601

Four market indications

Third Party

$7,103

$10,942

$9,014

External asset manager's valuation estimates

Model Valuation

$7,876

$11,551

$9,704

Binomial option model adjusted for American style options

WARRANT DISPOSITION REPORT – UPDATE JUNE 30, 2012

57

OceanFirst Financial Corp. (OCFC)
Repurchase of OCFC Warrant
On January 21, 2010, OceanFirst Financial Corp. (OCFC) agreed to pay $430,797 for the warrant held by
Treasury which entitled the holder of the warrant to purchase 190,427 shares of OCFC at a strike price of
$15.07 per share. The warrant had an expiration date of January 16, 2019.

$ Thousands
$650

OceanFirst Financial Corp. (OCFC)
Fair Market Value Estimates of US Treasury's Warrant Position

$550

$450
Final Bid - $430,797
$350

$250

$150

$50
Market Quotes

OCFC
Valuation Estimates for Warrant
($ Thousands)

Third Party

Model Valuation

Low

High

Estimate

Details

Market Quotes

$152

$392

$281

Three market indications

Third Party

$308

$468

$388

External asset manager's valuation estimates

Model Valuation

$269

$508

$381

Binomial option model adjusted for American style options

WARRANT DISPOSITION REPORT – UPDATE JUNE 30, 2012

58

Monarch Financial Holdings, Inc. (MNRK)
Repurchase of MNRK Warrant
On February 1, 2010, Monarch Financial Holdings, Inc. (MNRK) agreed to pay $260,000 for the warrant held
by Treasury which entitled the holder of the warrant to purchase 132,353 shares of MNRK at a strike price of
$8.33 per share. The warrant had an expiration date of December 19, 2018.

$ Thousands
$450

Monarch Financial Holdings, Inc. (MNRK)
Fair Market Value Estimates of US Treasury's Warrant Position

$400
$350
$300

Final Bid - $260,000

$250

Second Bid - $250,000

$200

First Bid - $209,118

$150
$100
$50
$0
Market Quotes

MNRK
Valuation Estimates for Warrant
($ Thousands)

Third Party

Model Valuation

Low

High

Estimate

Details

Market Quotes

$132

$394

$263

Two market indications

Third Party

$201

$297

$260

External asset manager's valuation estimates

Model Valuation

$230

$321

$275

Binomial option model adjusted for American style options

WARRANT DISPOSITION REPORT – UPDATE JUNE 30, 2012

59

Umpqua Holdings Corporation (UMPQ)
Repurchase of UMPQ Warrant
On March 22, 2010, Umpqua Holdings Corporation (UMPQ) agreed to pay $4.50 million for the warrant held
by Treasury which entitled the holder of the warrant to purchase 1,110,898 shares of UMPQ at a strike price of
$14.46 per share. The warrant had an expiration date of November 14, 2018.

$ Thousands
$6,000

Umpqua Holdings Corporation (UMPQ)
Fair Market Value Estimates of US Treasury's Warrant Position

$5,500
$5,000
Final Bid - $4,500,000

$4,500
Third Bid - $4,250,000

$4,000
$3,500

Second Bid - $3,610,419

$3,000
$2,500
$2,000
First Bid - $2,055,161
$1,500
$1,000
Market Quotes

UMPQ
Valuation Estimates for Warrant
($ Thousands)

Third Party

Model Valuation

Low

High

Estimate

Details

Market Quotes

$3,210

$344

$3,327

Two market indications

Third Party

$3,255

$5,088

$4,155

External asset manager's valuation estimates

Model Valuation

$3,361

$5,103

$4,265

Binomial option model adjusted for American style options

WARRANT DISPOSITION REPORT – UPDATE JUNE 30, 2012

60

City National Corporation (CYN)
Repurchase of CYN Warrant
On April 6, 2010, City National Corporation (CYN) agreed to pay $18.50 million for the warrant held by
Treasury which entitled the holder of the warrant to purchase 1,128,668 shares of CYN at a strike price of
$53.16 per share. The warrant had an expiration date of November 21, 2018.

$ Thousands
$25,000

City National Corporation (CYN)
Fair Market Value Estimates of US Treasury's Warrant Position

$23,000
$21,000
Final Bid - $18,500,000

$19,000
$17,000

Second Bid - $17,500,000

$15,000
$13,000

First Bid - $11,900,000

$11,000
$9,000
Market Quotes

CYN
Valuation Estimates for Warrant
($ Thousands)

Third Party

Model Valuation

Low

High

Estimate

Details

Market Quotes

$12,585

$15,338

$14,278

Three market indications

Third Party

$14,298

$21,800

$18,016

External asset manager's valuation estimates

Model Valuation

$14,816

$21,947

$18,365

Binomial option model adjusted for American style options

WARRANT DISPOSITION REPORT – UPDATE JUNE 30, 2012

61

SVB Financial Group (SIVB)
Repurchase of SIVB Warrant
On June 8, 2010, SVB Financial Group (SIVB) agreed to pay $6.82 million for the warrant held by Treasury
which entitled the holder of the warrant to purchase 354,058 shares of SIVB at a strike price of $49.78 per
share. The warrant had an expiration date of December 12, 2018.

$Thousands
$10,000

SVB Financial Group (SIVB)
Fair Market Value Estimates of US Treasury's Warrant Position

$9,000
$8,000
Final Bid - $6,820,000

$7,000
$6,000

Second Bid - $6,200,000

$5,000
$4,000
First Bid - $3,800,000
$3,000
$2,000
Market Quotes

SIVB
Valuation Estimates for Warrant
($ Thousands)

Third Party

Model Valuation

Low

High

Estimate

Details

Market Quotes

$4,483

$6,289

$5,524

Three market indications

Third Party

$7,690

$9,040

$8,364

External asset manager's valuation estimates

Model Valuation

$5,704

$7,897

$6,782

Binomial option model adjusted for American style options

WARRANT DISPOSITION REPORT – UPDATE JUNE 30, 2012

62

Discover Financial Services (DFS)
Repurchase of DFS Warrant
On June 29, 2010, Discover Financial Services (DFS) agreed to pay $172.00 million for the warrant held by
Treasury which entitled the holder of the warrant to purchase 20,500,413 shares of DFS at a strike price of
$8.96 per share. The warrant had an expiration date of March 13, 2019.

$ Thousands
$220,000

Discover Financial Services (DFS)
Fair Market Value Estimates of US Treasury's Warrant Position

$210,000
$200,000
$190,000
$180,000
Second Bid - $172,000,000
$170,000
$160,000

First Bid - $165,000,000

$150,000
$140,000
$130,000
$120,000
Market Quotes

DFS
Valuation Estimates for Warrant
($ Thousands)

Third Party

Model Valuation

Low

High

Estimate

Details

Market Quotes

$163,700

$168,103

$166,020

Three market indications

Third Party

$151,276

$187,655

$169,255

External asset manager's valuation estimates

Model Valuation

$137,293

$168,159

$152,404

Binomial option model adjusted for American style options

Note: The chart above shows Treasury’s warrant valuation analysis at the time of DFS’s last bid in late June 2010. Two months
earlier, DFS had placed bids of $165 million and $180 million on 4/23/10 and 5/4/10, respectively. At that time, DFS’s stock price
was approximately 10 percent higher than it was in late June 2010. Accordingly, the bids were below the midpoints of Treasury’s
various valuation metrics and were not accepted. When considering the $180 million bid in early May 2010, the midpoint valuation
estimates were as follows: market indications $189 million, third party $198 million, and Treasury’s model $186 million.

WARRANT DISPOSITION REPORT – UPDATE JUNE 30, 2012

63

Bar Harbor Bankshares (BHB)
Repurchase of BHB Warrant
On July 22, 2010, Bar Harbor Bankshares (BHB) agreed to pay $250,000 for the warrant held by Treasury
which entitled the holder of the warrant to purchase 52,455 shares of BHB at a strike price of $26.81 per share.
The warrant had an expiration date of January 16, 2019.

$ Thousands
$500

Bar Harbor Bankshares (BHB)
Fair Market Value Estimates of US Treasury's Warrant Position

$450
$400
$350
$300
Second Bid - $250,000
$250
First Bid - $225,000

$200
$150
$100
$50
$0

Market Quotes

BHB
Valuation Estimates for Warrant
($ Thousands)

Third Party

Model Valuation

Low

High

Estimate

Details

Market Quotes

$189

$196

$193

Two market indications

Third Party

$239

$393

$315

External asset manager's valuation estimates

Model Valuation

$182

$329

$255

Binomial option model adjusted for American style options

Note: The chart above shows Treasury’s warrant valuation analysis at the time of BHB’s last bid of July 2010. Months earlier, BHB
had placed bids of $67,000 and $175,000 on 3/10/10 and 4/23/10, respectively. The bids were below Treasury’s various valuation
metrics at that time and were not accepted.

WARRANT DISPOSITION REPORT – UPDATE JUNE 30, 2012

64

Citizens & Northern Corporation (CZNC)
Repurchase of CZNC Warrant
On August 25, 2010, Citizens & Northern Corporation (CZNC) agreed to pay $400,000 for the warrant held by
Treasury which entitled the holder of the warrant to purchase 194,794 shares of CZNC at a strike price of
$20.36 per share. The warrant had an expiration date of January 16, 2019.

$ Thousands
$1,000

Citizens and Northern Corporation (CZNC)
Fair Market Value Estimates of US Treasury's Warrant Position

$900
$800
$700
$600
$500
$400
First Bid - $400,000
$300
$200
$100
$0
Market Quotes

CZNC
Valuation Estimates for Warrant
($ Thousands)

Third Party

Model Valuation

Low

High

Estimate

Details

Market Quotes

$127

$378

$245

Three market indications

Third Party

$620

$890

$753

External asset manager's valuation estimates

Model Valuation

$217

$415

$316

Binomial option model adjusted for American style options

WARRANT DISPOSITION REPORT – UPDATE JUNE 30, 2012

65

Columbia Banking System (COLB)
Repurchase of COLB Warrant
On August 25, 2010, Columbia Banking System (COLB) agreed to pay $3.30 million for the warrant held by
Treasury which entitled the holder of the warrant to purchase 398,023 shares of COLB at a strike price of
$14.49 per share. The warrant had an expiration date of November 21, 2018.

$ Thousands
$4,000

Columbia Banking System, Inc. (COLB)
Fair Market Value Estimates of US Treasury's Warrant Position

$3,500
$3,000
$2,500
First Bid - $3,301,647
$2,000
$1,500
$1,000
$500
$0
Market Quotes

COLB
Valuation Estimates for Warrant
($ Thousands)

Third Party

Model Valuation

Low

High

Estimate

Details

Market Quotes

$1,950

$3,383

$2,632

Four market indications

Third Party

$2,639

$3,454

$3,042

External asset manager's valuation estimates

Model Valuation

$2,497

$3,299

$2,893

Binomial option model adjusted for American style options

WARRANT DISPOSITION REPORT – UPDATE JUNE 30, 2012

66

The Bancorp, Inc. (TBBK)
Repurchase of TBBK Warrant
On September 2, 2010, The Bancorp, Inc. (TBBK) agreed to pay $4.75 million for the warrant held by Treasury
which entitled the holder of the warrant to purchase 980,203 shares of TBBK at a strike price of $3.46 per
share. The warrant had an expiration date of December 12, 2018.

$ Thousands
$6,000

The Bancorp, Inc. (TBBK)
Fair Market Value Estimates of US Treasury's Warrant Position

$5,500
$5,000
$4,500
First Bid - $4,753,985
$4,000
$3,500
$3,000
$2,500
$2,000
Market Quotes

TBBK
Valuation Estimates for Warrant
($ Thousands)

Third Party

Model Valuation

Low

High

Estimate

Details

Market Quotes

$3,666

$4,578

$4,122

Two market indications

Third Party

$4,558

$5,048

$4,960

External asset manager's valuation estimates

Model Valuation

$3,323

$3,881

$3,742

Binomial option model adjusted for American style options

Note: The chart above shows Treasury’s warrant valuation analysis at the time of TBBK’s last bid in early September 2010. Months
earlier, TBBK had placed bids of $3.55 million and $4.85 million on 3/15/10 and 3/29/10, respectively. At that time, TBBK’s stock
price was more than 20 percent higher than it was in September 2010. Accordingly the bids were below some of the midpoints of
Treasury’s various valuation metrics and were not accepted. When considering the $4.85 million bid in late March 2010, the midpoint
valuation estimates were as follows: market indications $6.0 million, third party $4.6 million, and Treasury’s model $4.8 million.

WARRANT DISPOSITION REPORT – UPDATE JUNE 30, 2012

67

Fulton Financial Corporation (FULT)
Repurchase of FULT Warrant
On September 3, 2010, Fulton Financial Corporation (FULT) agreed to pay $10.80 million for the warrant held
by Treasury which entitled the holder of the warrant to purchase 5,509,756 shares of FULT at a strike price of
$10.25 per share. The warrant had an expiration date of December 23, 2018.

$ Thousands

Fulton Financial Corporation (FULT)
Fair Market Value Estimates of US Treasury's Warrant Position

$20,000
$18,000
$16,000
$14,000
$12,000
Third Bid - $10,800,000
$10,000
Second Bid - $9,500,000
$8,000
First Bid - $8,000,000
$6,000
$4,000
$2,000
Market Quotes

FULT
Valuation Estimates for Warrant
($ Thousands)

Third Party

Model Valuation

Low

High

Estimate

Details

Market Quotes

$8,525

$11,648

$10,288

Four market indications

Third Party

$6,832

$13,168

$9,918

External asset manager's valuation estimates

Model Valuation

$7,976

$13,155

$10,537

Binomial option model adjusted for American style options

WARRANT DISPOSITION REPORT – UPDATE JUNE 30, 2012

68

First PacTrust Bancorp, Inc. (FPTB)
Repurchase of FPTB Warrant
On December 30, 2010, First PacTrust Bancorp, Inc. (FPTB) agreed to pay $1.00 million for the warrant held
by Treasury which entitled the holder of the warrant to purchase 280,795 shares of FPTB at a strike price of
$10.31 per share. The warrant had an expiration date of November 21, 2018.

$ Thousands
$1,400

First PacTrust Bancorp, Inc. (FPTB)
Fair Market Value Estimates of US Treasury's Warrant Position

$1,200
Final Bid - $1,003,227
$1,000

$800

$600

$400
First Bid - $291,152
$200
Market Quotes

FPTB
Valuation Estimates for Warrant
($ Thousands)

Third Party

Low

High

Estimate

Market Quotes

$686

$1,253

$966

Third Party

$848

$1,231

$1,034

Model Valuation

$693

$989

$837

Model Valuation

Details
Three market indications
External asset manager's valuation estimates
Binomial option model adjusted for American style options

WARRANT DISPOSITION REPORT – UPDATE JUNE 30, 2012

69

Susquehanna Bancshares, Inc. (SUSQ)
Repurchase of SUSQ Warrant
On January 12, 2011, Susquehanna Bancshares, Inc. (SUSQ) agreed to pay $5.27 million for the warrant held
by Treasury which entitled the holder of the warrant to purchase 3,028,264 shares of SUSQ at a strike price of
$14.86per share. The warrant had an expiration date of December 12, 2018.

$ Thousands
$8,000

Susquehanna Bancshares, Inc. (SUSQ)
Fair Market Value Estimates of US Treasury's Warrant Position

$7,000

$6,000
Final Bid - $5,269,179
$5,000

First Bid - $4,481,804

$4,000

$3,000

$2,000
Market Quotes

SUSQ
Valuation Estimates for Warrant
($ Thousands)

Third Party

Model Valuation

Low

High

Estimate

Details

Market Quotes

$4,282

$477

$4,572

Three market indications

Third Party

$4,421

$7,235

$5,441

External asset manager's valuation estimates

Model Valuation

$3,350

$6,720

$5,029

Binomial option model adjusted for American style options

WARRANT DISPOSITION REPORT – UPDATE JUNE 30, 2012

70

Huntington Bancshares Incorporated (HBAN)
Repurchase of HBAN Warrant
On January 13, 2011, Huntington Bancshares Incorporated (HBAN) agreed to pay $49.10 million for the
warrant held by Treasury which entitled the holder of the warrant to purchase 23,562,994 shares of HBAN at a
strike price of $8.90per share. The warrant had an expiration date of November 14, 2018.

$ Thousands
$70,000

Huntington Bancshares Incorporated (HBAN)
Fair Market Value Estimates of US Treasury's Warrant Position

$65,000
$60,000
$55,000
$50,000
Final Bid - $49,100,000
$45,000
$40,000
$35,000
$30,000
$25,000
$20,000
$15,000
$10,000
Market Quotes

HBAN
Valuation Estimates for Warrant
($ Thousands)

Third Party

Model Valuation

Low

High

Estimate

Details

Market Quotes

$41,235

$63,149

$48,125

Four market indications

Third Party

$32,069

$52,284

$42,038

External asset manager's valuation estimates

Model Valuation

$37,220

$57,182

$46,895

Binomial option model adjusted for American style options

WARRANT DISPOSITION REPORT – UPDATE JUNE 30, 2012

71

East West Bancorp, Inc. (EWBC)
Repurchase of EWBC Warrant
On January 21, 2011, East West Bancorp, Inc. (EWBC) agreed to pay $14.50 million for the warrant held by
Treasury which entitled the holder of the warrant to purchase 1,517,555 shares of EWBC at a strike price of
$15.15 per share. The warrant had an expiration date of December 5, 2018.

$ Thousands
$18,000

East West Bancorp, Inc. (EWBC)
Fair Market Value Estimates of US Treasury's Warrant Position

$17,000
$16,000
$15,000
Final Bid - $14,500,000
$14,000
$13,000
First Bid - $12,000,000
$12,000
$11,000
$10,000
Market Quotes

EWBC
Valuation Estimates for Warrant
($ Thousands)

Third Party

Model Valuation

Low

High

Estimate

Details

Market Quotes

$12,645

$14,596

$13,655

Three market indications

Third Party

$12,701

$16,585

$14,588

External asset manager's valuation estimates

Model Valuation

$12,036

$15,754

$13,851

Binomial option model adjusted for American style options

WARRANT DISPOSITION REPORT – UPDATE JUNE 30, 2012

72

Sandy Spring Bancorp, Inc. (SASR)
Repurchase of SASR Warrant
On February 11, 2011, Sandy Spring Bancorp, Inc. (SASR) agreed to pay $4.45 million for the warrant held by
Treasury which entitled the holder of the warrant to purchase 651,547 shares of SASR at a strike price of
$19.13 per share. The warrant had an expiration date of December 5, 2018.

$ Thousands
$6,000

Sandy Spring Bancorp, Inc. (SASR)
Fair Market Value Estimates of US Treasury's Warrant Position

$5,500
$5,000
Final Bid - $4,450,000

$4,500
Fourth Bid - $4,200,000

$4,000

Third Bid - $3,750,000

$3,500
Second Bid - $3,430,000
$3,000

First Bid - $3,076,946

$2,500
$2,000
$1,500
$1,000
Market Quotes

SASR
Valuation Estimates for Warrant
($ Thousands)

Third Party

Model Valuation

Low

High

Estimate

Details

Market Quotes

$3,999

$4,291

$4,140

Three market indications

Third Party

$3,538

$5,021

$4,277

External asset manager's valuation estimates

Model Valuation

$3,582

$5,073

$4,323

Binomial option model adjusted for American style options

WARRANT DISPOSITION REPORT – UPDATE JUNE 30, 2012

73

Washington Banking Company (WBCO)
Repurchase of WBCO Warrant
On February 16, 2011, Washington Banking Company (WBCO) agreed to pay $1.63 million for the warrant
held by Treasury which entitled the holder of the warrant to purchase 246,082 shares of WBCO at a strike price
of $8.04 per share. The warrant had an expiration date of January 16, 2019.

$ Thousands
$1,900

Washington Banking Company (WBCO)
Fair Market Value Estimates of US Treasury's Warrant Position

$1,800
$1,700
Final Bid - $1,625,000
$1,600
Second Bid - $1,575,000
$1,500
$1,400
First Bid - $1,370,000
$1,300
$1,200
$1,100
Market Quotes

WBCO
Valuation Estimates for Warrant
($ Thousands)

Third Party

Model Valuation

Low

High

Estimate

Details

Market Quotes

$1,599

$1,696

$1,647

Four market indications

Third Party

$1,405

$1,773

$1,585

External asset manager's valuation estimates

Model Valuation

$1,430

$1,708

$1,559

Binomial option model adjusted for American style options

WARRANT DISPOSITION REPORT – UPDATE JUNE 30, 2012

74

1st Source Corporation (SRCE)
Repurchase of SRCE Warrant
On March 2, 2011, 1st Source Corporation (SRCE) agreed to pay $3.75 million for the warrant held by Treasury
which entitled the holder of the warrant to purchase 837,947 shares of SRCE at a strike price of $19.87 per
share. The warrant had an expiration date of January 23, 2019.

$ Thousands
$5,500

1st Source Corporation (SRCE)
Fair Market Value Estimates of US Treasury's Warrant Position

$5,000

$4,500

$4,000
Second and Final Bids $3,750,000

$3,500

First Bid - $3,250,000

$3,000

$2,500

$2,000
Market Quotes

SRCE
Valuation Estimates for Warrant
($ Thousands)

Third Party

Model Valuation

Low

High

Estimate

Details

Market Quotes

$3,233

$4,019

$3,755

Four market indications

Third Party

$2,566

$4,528

$3,527

External asset manager's valuation estimates

Model Valuation

$3,173

$4,820

$3,996

Binomial option model adjusted for American style options

WARRANT DISPOSITION REPORT – UPDATE JUNE 30, 2012

75

First Horizon National Corporation (FHN)
Repurchase of FHN Warrant
On March 4, 2011, First Horizon National Corporation (FHN) agreed to pay $79.70 million for the warrant held
by Treasury which entitled the holder of the warrant to purchase 14,842,321 shares of FHN at a strike price of
$8.76 per share. The warrant had an expiration date of November 14, 2018.

$ Thousands
$110,000

First Horizon National Corporation (FHN)
Fair Market Value Estimates of US Treasury's Warrant Position

$105,000
$100,000
$95,000
$90,000
$85,000
Final Bid - $79,700,000

$80,000
$75,000
$70,000
$65,000
$60,000
$55,000
$50,000

First Bid - $51,948,124

$45,000
$40,000
Market Quotes

FHN
Valuation Estimates for Warrant
($ Thousands)

Third Party

Model Valuation

Low

High

Estimate

Details

Market Quotes

$57,240

$84,085

$70,318

Four market indications

Third Party

$64,119

$79,258

$74,063

External asset manager's valuation estimates

Model Valuation

$74,165

$95,802

$84,485

Binomial option model adjusted for American style options

WARRANT DISPOSITION REPORT – UPDATE JUNE 30, 2012

76

Fifth Third Bancorp (FITB)
Repurchase of FITB Warrant
On March 14, 2011, Fifth Third Bancorp (FITB) agreed to pay $280.03 million for the warrant held by Treasury
which entitled the holder of the warrant to purchase 43,617,747 shares of FITB at a strike price of $11.72 per
share. The warrant had an expiration date of December 31, 2018.

$ Thousands
$400,000

Fifth Third Bancorp (FITB)
Fair Market Value Estimates of US Treasury's Warrant Position

$380,000
$360,000
$340,000
$320,000
$300,000

Second and Final Bids $280,025,936

$280,000
First Bid - $273,919,451

$260,000
$240,000
$220,000
$200,000

Market Quotes

FITB
Valuation Estimates for Warrant
($ Thousands)

Third Party

Model Valuation

Low

High

Estimate

Details

Market Quotes

$260,454

$298,019

$275,665

Three market indications

Third Party

$237,281

$312,739

$278,717

External asset manager's valuation estimates

Model Valuation

$250,920

$333,588

$273,919

Binomial option model adjusted for American style options

WARRANT DISPOSITION REPORT – UPDATE JUNE 30, 2012

77

National Penn Bancshares, Inc. (NPBC)
Repurchase of NPBC Warrant
On April 8, 2011, National Penn Bancshares, Inc. (NPBC) agreed to pay $1.00 million for the warrant held by
Treasury which entitled the holder of the warrant to purchase 735,294 shares of NPBC at a strike price of
$15.30 per share. The warrant had an expiration date of December 12, 2018.

$ Thousands
$1,800

National Penn Bancshares, Inc. (NPBC)
Fair Market Value Estimates of US Treasury's Warrant Position

$1,600
$1,400
$1,200
Final Bid - $1,000,000
$1,000
Third Bid - $882,353
$800
Second Bid - $764,705
$600
First Bid - $485,924

$400
$200
Market Quotes

NPBC
Valuation Estimates for Warrant
($ Thousands)

Third Party

Model Valuation

Low

High

Estimate

Details

Market Quotes

$791

$1,717

$1,187

Three market indications

Third Party

$538

$1,187

$847

External asset manager's valuation estimates

Model Valuation

$494

$1,142

$816

Binomial option model adjusted for American style options

WARRANT DISPOSITION REPORT – UPDATE JUNE 30, 2012

78

Bridge Capital Holdings (BBNK)
Repurchase of BBNK Warrant
On April 8, 2011, Bridge Capital Holdings (BBNK) agreed to pay $1.40 million for the warrant held by
Treasury which entitled the holder of the warrant to purchase 396,412 shares of BBNK at a strike price of $9.03
per share. The warrant had an expiration date of December 23, 2018.

$ Thousands
$2,000

Bridge Capital Holdings (BBNK)
Fair Market Value Estimates of US Treasury's Warrant Position

$1,800

$1,600
Final Bid - $1,395,000

$1,400

$1,200
First Bid - $1,150,000
$1,000

$800

$600
Market Quotes

BBNK
Valuation Estimates for Warrant
($ Thousands)

Third Party

Model Valuation

Low

High

Estimate

Details

Market Quotes

$949

$1,700

$1,150

Three market indications

Third Party

$960

$1,323

$1,150

External asset manager's valuation estimates

Model Valuation

$999

$1,305

$1,150

Binomial option model adjusted for American style options

WARRANT DISPOSITION REPORT – UPDATE JUNE 30, 2012

79

KeyCorp (KEY)
Repurchase of KEY Warrant
On April 18, 2011,KeyCorp (KEY) agreed to pay $70.00 million for the warrant held by Treasury which
entitled the holder of the warrant to purchase 35,244,361 shares of KEY at a strike price of $10.64 per share.
The warrant had an expiration date of November 14, 2018.

$ Thousands

KeyCorp (KEY)
Fair Market Value Estimates of US Treasury's Warrant Position

$100,000

$90,000

$80,000
Final Bid - $70,000,000
$70,000
First Bid - $63,000,000
$60,000

$50,000

$40,000

$30,000
Market Quotes

KEY
Valuation Estimates for Warrant
($ Thousands)

Third Party

Model Valuation

Low

High

Estimate

Details

Market Quotes

$56,623

$69,843

$62,763

Three market indications

Third Party

$43,498

$80,467

$61,658

External asset manager's valuation estimates

Model Valuation

$46,886

$84,263

$65,537

Binomial option model adjusted for American style options

WARRANT DISPOSITION REPORT – UPDATE JUNE 30, 2012

80

Financial Institutions, Inc. (FISI)
Repurchase of FISI Warrant
On May 2, 2011, Financial Institutions, Inc. (FISI) agreed to pay $2.08 million for the warrant held by Treasury
which entitled the holder of the warrant to purchase 378,175 shares of FISI at a strike price of $14.88 per share.
The warrant had an expiration date of December 23, 2018.

$ Thousands
$3,500

Financial Institutions, Inc. (FISI)
Fair Market Value Estimates of US Treasury's Warrant Position

$3,000

$2,500
Final Bid - $2,079,963
$2,000
Second Bid - $1,853,058
$1,500
First Bid - $1,418,156
$1,000

$500
Market Quotes

FISI
Valuation Estimates for Warrant
($ Thousands)

Third Party

Model Valuation

Low

High

Estimate

Details

Market Quotes

$1,275

$1,940

$1,669

Five market indications

Third Party

$2,090

$2,769

$2,428

External asset manager's valuation estimates

Model Valuation

$1,763

$2,391

$2,075

Binomial option model adjusted for American style options

WARRANT DISPOSITION REPORT – UPDATE JUNE 30, 2012

81

Sterling Bancorp (STL)
Repurchase of STL Warrant
On May 13, 2011, Sterling Bancorp (STL) agreed to pay $945,775 for the warrant held by Treasury which
entitled the holder of the warrant to purchase 516,817 shares of STL at a strike price of $12.19 per share. The
warrant had an expiration date of December 23, 2018.

$ Thousands

Sterling Bancorp (STL)
Fair Market Value Estimates of US Treasury's Warrant Position

$1,500

$1,300

$1,100
Final Bid - $945,775
$900

$700

$500

$300
Market Quotes

STL
Valuation Estimates for Warrant
($ Thousands)

Third Party

Model Valuation

Low

High

Estimate

Details

Market Quotes

$444

$734

$633

Four market indications

Third Party

$673

$1,193

$926

External asset manager's valuation estimates

Model Valuation

$657

$1,214

$935

Binomial option model adjusted for American style options

WARRANT DISPOSITION REPORT – UPDATE JUNE 30, 2012

82

Whitney Holding Company / Hancock Holding Company (WTNY/HBHC)
Repurchase of WTNY/HBHC Warrant
On May 13, 2011, Hancock Holding Company (HBHC) agreed to pay $6.90 million for the Whitney Holding
Company (WTNY) warrant held by Treasury which entitled the holder of the warrant to purchase 1,100,000
shares of HBHC at a strike price of $40.91 per share. The warrant had an expiration date of December 19,
2018.

$ Thousands
$10,000

Whitney Holding Corporation (WTNY)
Fair Market Value Estimates of US Treasury's Warrant Position

$9,000

$8,000
Final Bid - $6,900,000

$7,000

$6,000
First Bid - $6,000,000
$5,000

$4,000

$3,000
Market Quotes

WTNY / HBHC
Valuation Estimates for Warrant
($ Thousands)

Third Party

Model Valuation

Low

High

Estimate

Details

Market Quotes

$3,810

$6,259

$4,920

Three market indications

Third Party

$4,290

$8,360

$6,193

External asset manager's valuation estimates

Model Valuation

$4,411

$8,334

$6,367

Binomial option model adjusted for American style options

WARRANT DISPOSITION REPORT – UPDATE JUNE 30, 2012

83

Home Bancshares, Inc. (HOMB)
Repurchase of HOMB Warrant
On July 21, 2011, Home Bancshares, Inc. (HOMB) agreed to pay $1.30 million for the warrant held by
Treasury which entitled the holder of the warrant to purchase 158,472 shares of HOMB at a strike price of
$23.66 per share. The warrant had an expiration date of January 16, 2019.

$ Thousands
$2,000

Home Bancshares, Inc. (HOMB)
Fair Market Value Estimates of US Treasury's Warrant Position

$1,800
$1,600
$1,400

Final Bid - $1,300,000

$1,200
$1,000
$800
First Bid - $697,275
$600
$400
$200
Market Quotes

HOMB
Valuation Estimates for Warrant
($ Thousands)

Third Party

Model Valuation

Low

High

Estimate

Details

Market Quotes

$1,000

$1,297

$1,149

Four market indications

Third Party

$1,137

$1,644

$1,386

External asset manager's valuation estimates

$999

$1,446

$1,220

Binomial option model adjusted for American style options

Model Valuation

WARRANT DISPOSITION REPORT – UPDATE JUNE 30, 2012

84

MidWestOne Financial Group, Inc. (MOFG)
Repurchase of MOFG Warrant
On July 21, 2011,MidWestOne Financial Group, Inc. (MOFG) agreed to pay $1.00 million for the warrant held
by Treasury which entitled the holder of the warrant to purchase 198,675.5 shares of MOFG at a strike price of
$10.31 per share. The warrant had an expiration date of February 6, 2019.

$ Thousands
$1,400

MidWestOne Financial Group, Inc. (MOFG)
Fair Market Value Estimates of US Treasury's Warrant Position

$1,300
$1,200
$1,100
Final Bid - $1,000,000

$1,000

Second Bid - $950,000

$900
$800
First Bid - $800,000
$700
$600
$500
$400
Market Quotes

MOFG
Valuation Estimates for Warrant
($ Thousands)
Market Quotes
Third Party
Model Valuation

Third Party

Low

High

Estimate

$703

$946

$861

$1,011

$1,347

$1,177

$735

$1,024

$878

Model Valuation

Details
Three market indications
External asset manager's valuation estimates
Binomial option model adjusted for American style options

WARRANT DISPOSITION REPORT – UPDATE JUNE 30, 2012

85

Heritage Financial Corporation (HFWA)
Repurchase of HFWA Warrant
On August 5, 2011, Heritage Financial Corporation (HFWA) agreed to pay $450,000 for the warrant held by
Treasury which entitled the holder of the warrant to purchase 138,037 shares of HFWA at a strike price of
$13.04 per share. The warrant had an expiration date of November 21, 2018.

$ Thousands
$600

Heritage Financial Corporation (HFWA)
Fair Market Value Estimates of US Treasury's Warrant Position

$500
Final Bid - $450,000
Third Bid - $390,000

$400

Second Bid - $372,000
First Bid - $285,737

$300

$200

$100

$0
Market Quotes

HFWA
Valuation Estimates for Warrant
($ Thousands)

Third Party

Model Valuation

Low

High

Estimate

Details

Market Quotes

$287

$469

$391

Three market indications

Third Party

$366

$567

$465

External asset manager's valuation estimates

Model Valuation

$318

$515

$413

Binomial option model adjusted for American style options

WARRANT DISPOSITION REPORT – UPDATE JUNE 30, 2012

86

First California Financial Group, Inc. (FCAL)
Repurchase of FCAL Warrant
On August 9, 2011, First California Financial Group, Inc. (FCAL) agreed to pay $599,042 for the warrant held
by Treasury which entitled the holder of the warrant to purchase 599,042 shares of FCAL at a strike price of
$6.26 per share. The warrant had an expiration date of December 19, 2018.

$ Thousands
$800

First California Financial Group, Inc. (FCAL)
Fair Market Value Estimates of US Treasury's Warrant Position

$700
Final Bid - $599,042

$600
$500
$400
$300
$200
$100
$0

Market Quotes

FCAL
Valuation Estimates for Warrant
($ Thousands)

Third Party

Model Valuation

Low

High

Estimate

Details

Market Quotes

$150

$419

$262

Four market indications

Third Party

$497

$752

$646

External asset manager's valuation estimates

Model Valuation

$341

$556

$464

Binomial option model adjusted for American style options

WARRANT DISPOSITION REPORT – UPDATE JUNE 30, 2012

87

West Bancorporation, Inc. (WTBA)
Repurchase of WTBA Warrant
On August 23, 2011, West Bancorporation, Inc. (WTBA) agreed to pay $700,000 for the warrant held by
Treasury which entitled the holder of the warrant to purchase 474,100 shares of WTBA at a strike price of
$11.39 per share. The warrant had an expiration date of December 31, 2018.

$ Thousands
$1,100

West Bancorporation, Inc. (WTBA)
Fair Market Value Estimates of US Treasury's Warrant Position

$1,000
$900
$800
Final Bid - $700,000
$700
$600

Second Bid - $559,438

$500
$400

First Bid - $355,575

$300
$200
$100
Market Quotes

WTBA
Valuation Estimates for Warrant
($ Thousands)

Third Party

Model Valuation

Low

High

Estimate

Details

Market Quotes

$583

$920

$743

Three market indications

Third Party

$488

$896

$687

External asset manager's valuation estimates

Model Valuation

$526

$907

$713

Binomial option model adjusted for American style options

WARRANT DISPOSITION REPORT – UPDATE JUNE 30, 2012

88

Codorus Valley Bancorp, Inc. (CVLY)
Repurchase of CVLY Warrant
On August 31, 2012, Codorus Valley Bancorp, Inc. (CVLY) agreed to pay $526,604 for the warrant held by
Treasury which entitled the holder of the warrant to purchase 263,859 shares of CVLY at a strike price of $9.38
per share. The warrant had an expiration date of January 9, 2019.

$ Thousands
$800

Codorus Valley Bancorp, Inc. (CVLY)
Fair Market Value Estimates of US Treasury's Warrant Position

$700

$600
Final Bid - $526,604
$500

$400

$300

$200

$100
Market Quotes

CVLY
Valuation Estimates for Warrant
($ Thousands)

Third Party

Model Valuation

Low

High

Estimate

Details

Market Quotes

$225

$526

$397

Three market indications

Third Party

$325

$469

$396

External asset manager's valuation estimates

Model Valuation

$414

$606

$508

Binomial option model adjusted for American style options

WARRANT DISPOSITION REPORT – UPDATE JUNE 30, 2012

89

DNB Financial Corporation (DNBF)
Repurchase of DNBF Warrant
On August 31, 2011, DNB Financial Corporation (DNBF) agreed to pay $458,000 for the warrant held by
Treasury which entitled the holder of the warrant to purchase 186,311 shares of DNBR at a strike price of $9.46
per share. The warrant had an expiration date of January 30, 2019.

$ Thousands
$800

DNB Financial Corporation (DNBF)
Fair Market Value Estimates of US Treasury's Warrant Position

$700

$600

$500

Final Bid - $458,000

$400
First Bid - $373,000
$300

$200

$100
Market Quotes

DNBF
Valuation Estimates for Warrant
($ Thousands)

Third Party

Model Valuation

Low

High

Estimate

Details

Market Quotes

$279

$723

$521

Three market indications

Third Party

$266

$341

$305

External asset manager's valuation estimates

Model Valuation

$390

$539

$464

Binomial option model adjusted for American style options

WARRANT DISPOSITION REPORT – UPDATE JUNE 30, 2012

90

Summit State Bank (SSBI)
Repurchase of SSBI Warrant
On September 8, 2011, Summit State Bank (SSBI) agreed to pay $315,000 for the warrant held by Treasury
which entitled the holder of the warrant to purchase 239,212 shares of SSBI at a strike price of $5.33 per share.
The warrant had an expiration date of December 19, 2018.

$ Thousands
$500

Summit State Bank (SSBI)
Fair Market Value Estimates of US Treasury's Warrant Position

$450
$400
$350
Final Bid - $315,000
$300

Second Bid - $303,000
First Bid - $270,000

$250
$200
$150
$100

Market Quotes

SSBI
Valuation Estimates for Warrant
($ Thousands)

Third Party

Model Valuation

Low

High

Estimate

Details

Market Quotes

$248

$367

$311

Three market indications

Third Party

$242

$368

$305

External asset manager's valuation estimates

Model Valuation

$269

$383

$324

Binomial option model adjusted for American style options

WARRANT DISPOSITION REPORT – UPDATE JUNE 30, 2012

91

Central Valley Community Bancorp (CVCY)
Repurchase of CVCY Warrant
On September 9, 2011, Central Valley Community Bancorp (CVCY) agreed to pay $185,017 for the warrant
held by Treasury which entitled the holder of the warrant to purchase 79,067 shares of CVCY at a strike price
of $6.64 per share. The warrant had an expiration date of January 30, 2019.

$ Thousands
$350

Central Valley Community Bancorp (CPBC)
Fair Market Value Estimates of US Treasury's Warrant Position

$300

$250

$200
Final Bid - $185,017
$150

$100

$50

$0
Market Quotes

CVCY
Valuation Estimates for Warrant
($ Thousands)

Third Party

Model Valuation

Low

High

Estimate

Details

Market Quotes

$75

$153

$108

Three market indications

Third Party

$184

$229

$206

External asset manager's valuation estimates

Model Valuation

$128

$174

$156

Binomial option model adjusted for American style options

WARRANT DISPOSITION REPORT – UPDATE JUNE 30, 2012

92

Great Southern Bancorp (GSBC)
Repurchase of GSBC Warrant
On September 15, 2011, Great Southern Bancorp (GSBC) agreed to pay $6.44 million for the warrant held by
Treasury which entitled the holder of the warrant to purchase 909,091 shares of GSBC at a strike price of $9.57
per share. The warrant had an expiration date of December 5, 2018.

$ Thousands
$8,000

Great Southern Bancorp, Inc. (GSBC)
Fair Market Value Estimates of US Treasury's Warrant Position

$7,500
$7,000
Second and Final Bids - $6,436,364

$6,500
$6,000
$5,500
$5,000
$4,500

First Bid - $4,500,000
$4,000
$3,500
$3,000
Market Quotes

GSBC
Valuation Estimates for Warrant
($ Thousands)

Third Party

Model Valuation

Low

High

Estimate

Details

Market Quotes

$6,198

$7,480

$6,669

Three market indications

Third Party

$5,255

$6,318

$5,791

External asset manager's valuation estimates

Model Valuation

$6,080

$6,717

$6,296

Binomial option model adjusted for American style options

WARRANT DISPOSITION REPORT – UPDATE JUNE 30, 2012

93

Heartland Financial USA, Inc. (HTLF)
Repurchase of HTFL Warrant
On September 16, 2011, Heartland Financial USA, Inc. (HTLF) agreed to pay $1.80 million for the warrant
held by Treasury which entitled the holder of the warrant to purchase 609,687 shares of HTLF at a strike price
of $20.10 per share. The warrant had an expiration date of December 19, 2018.

$ Thousands
$2,600

Heartland Financial USA, Inc. (HTLF)
Fair Market Value Estimates of US Treasury's Warrant Position

$2,400
$2,200
$2,000
Final Bid - $1,800,000
$1,800
$1,600
$1,400
$1,200
$1,000
$800
$600
$400
Market Quotes

HTLF
Valuation Estimates for Warrant
($ Thousands)

Third Party

Model Valuation

Low

High

Estimate

Details

Market Quotes

$854

$1,634

$1,296

Four market indications

Third Party

$878

$1,725

$1,286

External asset manager's valuation estimates

$1,339

$2,156

$1,732

Binomial option model adjusted for American style options

Model Valuation

WARRANT DISPOSITION REPORT – UPDATE JUNE 30, 2012

94

MutualFirst Financial, Inc. (MFSF)
Repurchase of MFSF Warrant
On September 20, 2011, MutualFirst Financial, Inc. (MFSF) agreed to pay $900,194 for the warrant held by
Treasury which entitled the holder of the warrant to purchase 625,135 shares of MFSF at a strike price of
$7.77per share. The warrant had an expiration date of December 23, 2018.

$ Thousands
$1,500

MutualFirst Financial, Inc. (MFSF)
Fair Market Value Estimates of US Treasury's Warrant Position

$1,300

$1,100
Final Bid - $900,194

$900

$700
Second Bid - $562,622
$500
First Bid - $312,567
$300

$100
Market Quotes

MFSF
Valuation Estimates for Warrant
($ Thousands)

Third Party

Model Valuation

Low

High

Estimate

Details

Market Quotes

$499

$1,048

$748

Three market indications

Third Party

$662

$1,018

$838

External asset manager's valuation estimates

Model Valuation

$700

$1,113

$906

Binomial option model adjusted for American style options

WARRANT DISPOSITION REPORT – UPDATE JUNE 30, 2012

95

Oak Valley Bancorp (OVLY)
Repurchase of OVLY Warrant
On September 20, 2011, Oak Valley Bancorp (OVLY) agreed to pay $560,000 for the warrant held by Treasury
which entitled the holder of the warrant to purchase 350,346 shares of OVLY at a strike price of $5.78 per
share. The warrant had an expiration date of December 5, 2018.

$ Thousands
$800

Oak Valley Bancorp (OVLY)
Fair Market Value Estimates of US Treasury's Warrant Position

$700

$600
Final Bid - $560,000
Second Bid - $507,464
$500

First Bid - $408,316
$400

$300

$200
Market Quotes

OVLY
Valuation Estimates for Warrant
($ Thousands)

Third Party

Model Valuation

Low

High

Estimate

Details

Market Quotes

$395

$683

$548

Three market indications

Third Party

$488

$642

$564

External asset manager's valuation estimates

Model Valuation

$396

$549

$472

Binomial option model adjusted for American style options

WARRANT DISPOSITION REPORT – UPDATE JUNE 30, 2012

96

Community Bank Shares of Indiana, Inc. (CBIN)
Repurchase of CBIN Warrant
On October 4, 2011, Community Bank Shares of Indiana, Inc. (CBIN) agreed to pay $1.10 million for the
warrant held by Treasury which entitled the holder of the warrant to purchase 386,270 shares of CBIN at a
strike price of $7.56 per share. The warrant had an expiration date of May 29, 2019.

$ Thousands
$1,400

Community Bank Shares of Indiana, Inc. (CBIN)
Fair Market Value Estimates of US Treasury's Warrant Position

$1,300
$1,200
Final Bid - $1,100,870

$1,100
$1,000
$900
$800
$700
$600
$500
$400

Market Quotes

CBIN
Valuation Estimates for Warrant
($ Thousands)

Third Party

Model Valuation

Low

High

Estimate

Details

Market Quotes

$707

$1,004

$858

Three market indications

Third Party

$684

$838

$758

External asset manager's valuation estimates

Model Valuation

$882

$1,156

$1,014

Binomial option model adjusted for American style options

WARRANT DISPOSITION REPORT – UPDATE JUNE 30, 2012

97

Stewardship Financial Corporation (SSFN)
Repurchase of SSFN Warrant
On October 11, 2011, Stewardship Financial Corporation (SSFN) agreed to pay $107,398 for the warrant held
by Treasury which entitled the holder of the warrant to purchase 133,475 shares of SSFN at a strike price of
$11.24 per share. The warrant had an expiration date of January 30, 2019.

$ Thousands
$160

Stewardship Financial Corporation (SSFN)
Fair Market Value Estimates of US Treasury's Warrant Position

$140
$120
Final Bid - $107,398
$100
$80
$60
$40
$20
$0
Market Quotes

SSFN
Valuation Estimates for Warrant
($ Thousands)

Third Party

Model Valuation

Low

High

Estimate

Details

Market Quotes

$8

$95

$60

Four market indications

Third Party

$47

$101

$72

External asset manager's valuation estimates

Model Valuation

$60

$120

$89

Binomial option model adjusted for American style options

WARRANT DISPOSITION REPORT – UPDATE JUNE 30, 2012

98

Central Bancorp (CEBK)
Repurchase of CEBK Warrant
On October 12, 2011, Central Bancorp (CEBK) agreed to pay $2.53 million for the warrant held by Treasury
which entitled the holder of the warrant to purchase 234,742 shares of CEBK at a strike price of $6.39 per
share. The warrant had an expiration date of December 5, 2018.

$ Thousands
$2,700

Central Bancorp (CEBK)
Fair Market Value Estimates of US Treasury's Warrant Position

$2,600
Final Bid - $2,525,000
$2,500

Intrinsic Value

Fourth Bid - $2,400,000

$2,400

Third Bid - $2,300,000

$2,300

Discounted Intrinsic Value

Second Bid - $2,200,000

$2,200

First Bid - $2,100,000

$2,100

$2,000
Market Quotes

CEBK
Valuation Estimates for Warrant
($ Thousands)

Third Party

Model Valuation

Low

High

Estimate

Details

Market Quotes

$2,405

$2,539

$2,497

Four market indications

Third Party

$2,288

$2,288

$2,288

External asset manager's valuation estimates

Model Valuation

$2,526

$2,526

$2,526

Binomial option model adjusted for American style options

WARRANT DISPOSITION REPORT – UPDATE JUNE 30, 2012

99

Bank of Commerce Holdings (BOCH)
Repurchase of BOCH Warrant
On October 17, 2011, Bank of Commerce Holdings (BOCH) agreed to pay $125,000 for the warrant held by
Treasury which entitled the holder of the warrant to purchase 405,405 shares of BOCH at a strike price of $6.29
per share. The warrant had an expiration date of November 14, 2019.

$ Thousands
$250

Bank of Commerce Holdings (BOCH)
Fair Market Value Estimates of US Treasury's Warrant Position

$200

$150
Final Bid - $125,000

$100
First Bid - $95,640

$50

$0
Market Quotes

BOCH
Valuation Estimates for Warrant
($ Thousands)

Third Party

Model Valuation

Low

High

Estimate

Details

Market Quotes

$50

$142

$101

Four market indications

Third Party

$69

$138

$101

External asset manager's valuation estimates

Model Valuation

$76

$170

$122

Binomial option model adjusted for American style options

WARRANT DISPOSITION REPORT – UPDATE JUNE 30, 2012

100

Community Partners Bancorp (CPBC)
Repurchase of CPBC Warrant
On October 18, 2011, Community Partners Bancorp (CPBC) agreed to pay $460,000 for the warrant held by
Treasury which entitled the holder of the warrant to purchase 311,972 shares of CPBC at a strike price of $4.33
per share. The warrant had an expiration date of January 30, 2019.

$ Thousands
$700

Community Partners Bancorp (CPBC)
Fair Market Value Estimates of US Treasury's Warrant Position

$600

$500
Final Bid - $460,000
Fourth Bid - $415,000
$400

Third Bid - $385,000
Second Bid - $375,000

$300

First Bid - $200,000

$200

$100
Market Quotes

CPBC
Valuation Estimates for Warrant
($ Thousands)

Third Party

Model Valuation

Low

High

Estimate

Details

Market Quotes

$357

$578

$459

Three market indications

Third Party

$381

$481

$446

External asset manager's valuation estimates

Model Valuation

$382

$534

$457

Binomial option model adjusted for American style options

WARRANT DISPOSITION REPORT – UPDATE JUNE 30, 2012

101

Ameriserv Financial, Inc. (ASRV)
Repurchase of ASRV Warrant
On October 27, 2011, Ameriserv Financial, Inc. (ASRV) agreed to pay $825,000 for the warrant held by
Treasury which entitled the holder of the warrant to purchase 1,312,500 shares of ASRV at a strike price of
$2.40 per share. The warrant had an expiration date of December 19, 2018.

$ Thousands
$1,200

Ameriserv Financial, Inc. (ASRV)
Fair Market Value Estimates of US Treasury's Warrant Position

$1,100
$1,000
$900
Final Bid - $825,000
$800

Fourth Bid - $812,000
Third Bid - $708,000

$700

Second Bid - $658,847

$600
$500
First Bid - $392,000

$400
$300

Market Quotes

ASRV
Valuation Estimates for Warrant
($ Thousands)

Third Party

Low

High

Estimate

Market Quotes

$515

$978

$708

Third Party

$893

$1,168

$1,108

Model Valuation

$598

$851

$722

Model Valuation

Details
Four market indications
External asset manager's valuation estimates
Binomial option model adjusted for American style options

Note: The third party asset manager’s volatility assumption did not reflect the market limits on volatility realized by Treasury in the
warrant auctions held to date.

WARRANT DISPOSITION REPORT – UPDATE JUNE 30, 2012

102

First Northern Community Bancorp (FNRN)
Repurchase of FNRN Warrant
On October 28, 2011, First Northern Community Bancorp (FNRN) agreed to pay $375,000for the warrant held
by Treasury which entitled the holder of the warrant to purchase 352,977 shares of FNRN at a strike price of
$7.39 per share. The warrant had an expiration date of March 13, 2019.

$ Thousands
$700

First Northern Community Bancorp (FNRN)
Fair Market Value Estimates of US Treasury's Warrant Position

$600

$500

$400
Final Bid - $375,000
$300
Second Bid - $300,000
First Bid - $230,000

$200

$100

$0
Market Quotes

FNRN
Valuation Estimates for Warrant
($ Thousands)

Third Party

Model Valuation

Low

High

Estimate

Details

Market Quotes

$49

$382

$248

Four market indications

Third Party

$407

$581

$508

External asset manager's valuation estimates

Model Valuation

$281

$415

$359

Binomial option model adjusted for American style options

Note: The third party asset manager’s volatility assumption did not reflect the market limits on volatility realized by Treasury in the
warrant auctions held to date.

WARRANT DISPOSITION REPORT – UPDATE JUNE 30, 2012

103

Salisbury Bancorp, Inc. (SAL)
Repurchase of SAL Warrant
On October 28, 2011, Salisbury Bancorp, Inc. (SAL) agreed to pay $205,000 for the warrant held by Treasury
which entitled the holder of the warrant to purchase 57,671 shares of SAL at a strike price of $22.93 per share.
The warrant had an expiration date of March 13, 2019.

$ Thousands
$400

Salisbury Bancorp, Inc. (SAL)
Fair Market Value Estimates of US Treasury's Warrant Position

$350
$300
$250
Final Bid - $205,000
$200
Second & Third Bids - $201,849
$150
$100

First Bid - $112,747

$50
$0
Market Quotes

SAL
Valuation Estimates for Warrant
($ Thousands)

Third Party

Model Valuation

Low

High

Estimate

Details

Market Quotes

$50

$235

$159

Three market indications

Third Party

$236

$345

$311

External asset manager's valuation estimates

Model Valuation

$129

$222

$175

Binomial option model adjusted for American style options

WARRANT DISPOSITION REPORT – UPDATE JUNE 30, 2012

104

Citizens South Banking Corporation (CSBC)
Repurchase of CSBC Warrant
On November 2, 2011, Citizens South Banking Corporation (CSBC) agreed to pay $225,157 for the warrant
held by Treasury which entitled the holder of the warrant to purchase 450,314 shares of CSBC at a strike price
of $6.83 per share. The warrant had an expiration date of December 19, 2018.

$ Thousands
$450

Citizens South Banking Corporation (CSBC)
Fair Market Value Estimates of US Treasury's Warrant Position

$400
$350
$300
$250
Final Bid - $223,157
$200
First Bid - $144,100

$150
$100
$50

Market Quotes

CSBC
Valuation Estimates for Warrant
($ Thousands)

Third Party

Model Valuation

Low

High

Estimate

Details

Market Quotes

$89

$268

$183

Three market indications

Third Party

$207

$360

$284

External asset manager's valuation estimates

Model Valuation

$138

$289

$223

Binomial option model adjusted for American style options

WARRANT DISPOSITION REPORT – UPDATE JUNE 30, 2012

105

Shore Bancshares, Inc. (SHBI)
Repurchase of SHBI Warrant
On November 2, 2011, Shore Bancshares, Inc. (SHBI) agreed to pay $25,000 for the warrant held by Treasury
which entitled the holder of the warrant to purchase 172,970 shares of SHBI at a strike price of $21.68 per
share. The warrant had an expiration date of January 9, 2019.

$ Thousands
$50

Shore Bancshares, Inc. (SHBI)
Fair Market Value Estimates of US Treasury's Warrant Position

$40

$30

Final Bid - $25,000

$20

$10

$0
Market Quotes

SHBI
Valuation Estimates for Warrant
($ Thousands)

Third Party

Model Valuation

Low

High

Estimate

Details

Market Quotes

$2

$43

$25

Four market indications

Third Party

$3

$31

$13

External asset manager's valuation estimates

Model Valuation

$9

$46

$22

Binomial option model adjusted for American style options

Note: SHBI’s initial determination of $254,495 was placed in May 2009 at which time the 20-day average stock price was $18.37 and
the bank’s determination was significantly below all of Treasury’s various valuation metrics of fair market value.

WARRANT DISPOSITION REPORT – UPDATE JUNE 30, 2012

106

QCR Holdings, Inc. (QCRH)
Repurchase of QCRH Warrant
On November 8, 2011, QCR Holdings, Inc. (QCRH) agreed to pay $1.10 million for the warrant held by
Treasury which entitled the holder of the warrant to purchase 521,888 shares of QCRH at a strike price of
$10.99 per share. The warrant had an expiration date of February 13, 2019.

$ Thousands
$2,000

QCR Holdings, Inc. (QCRH)
Fair Market Value Estimates of US Treasury's Warrant Position

$1,800
$1,600
$1,400
$1,200

Final Bid - $1,100,000

$1,000
Second Bid - $850,000
$800
$600
First Bid - $550,400
$400
$200
$0
Market Quotes

QCRH
Valuation Estimates for Warrant
($ Thousands)

Third Party

Model Valuation

Low

High

Estimate

Details

Market Quotes

$647

$1,462

$1,086

Four market indications

Third Party

$731

$1,242

$981

External asset manager's valuation estimates

Model Valuation

$660

$1,087

$862

Binomial option model adjusted for American style options

WARRANT DISPOSITION REPORT – UPDATE JUNE 30, 2012

107

Emclaire Financial Corp. (EMCF)
Repurchase of EMCF Warrant
On November 16 2011, Emclaire Financial Corp. (EMCF) agreed to pay $51,113 for the warrant held by
Treasury which entitled the holder of the warrant to purchase 50,111 shares of EMCF at a strike price of $22.45
per share. The warrant had an expiration date of December 23, 2018.

$ Thousands
$100

Emclaire Financial Corp. (EMCF)
Fair Market Value Estimates of US Treasury's Warrant Position

$90
$80
$70
$60
$50
Final Bid - $51,113
$40
$30
$20
$10
$0
Market Quotes

EMCF
Valuation Estimates for Warrant
($ Thousands)

Third Party

Model Valuation

Low

High

Estimate

Details

Market Quotes

$2

$64

$34

Three market indications

Third Party

$23

$58

$40

External asset manager's valuation estimates

Model Valuation

$37

$90

$61

Binomial option model adjusted for American style options

WARRANT DISPOSITION REPORT – UPDATE JUNE 30, 2012

108

Center Bancorp, Inc. (CNBC)
Repurchase of CNBC Warrant
On November 22, 2011, Center Bancorp, Inc. (CNBC) agreed to pay $245,000 for the warrant held by Treasury
which entitled the holder of the warrant to purchase 86,705 shares of CNBC at a strike price of $8.65 per share.
The warrant had an expiration date of January 9, 2019.

$ Thousands
$400

Center Bancorp, Inc. (CNBC)
Fair Market Value Estimates of US Treasury's Warrant Position

$350

$300

Final Bid $245,000

$250

Third Bid - $221,824

$200

Second Bid - $200,288
$150
First Bid - $143,063
$100

$50
Market Quotes

CNBC
Valuation Estimates for Warrant
($ Thousands)

Third Party

Model Valuation

Low

High

Estimate

Details

Market Quotes

$142

$324

$217

Four market indications

Third Party

$176

$261

$218

External asset manager's valuation estimates

Model Valuation

$194

$277

$235

Binomial option model adjusted for American style options

WARRANT DISPOSITION REPORT – UPDATE JUNE 30, 2012

109

First Midwest Bancorp, Inc. (FMBI)
Repurchase of FMBI Warrant
On December 6, 2011, First Midwest Bancorp, Inc. (FMBI) agreed to pay $900,000 for the warrant held by
Treasury which entitled the holder of the warrant to purchase 1,305,230 shares of FMBI at a strike price of
$22.18 per share. The warrant had an expiration date of December 15, 2018.

$ Thousands

First Midwest Bancorp, Inc. (FMBI)
Fair Market Value Estimates of US Treasury's Warrant Position

$2,000
$1,800
$1,600
$1,400
$1,200
$1,000

Final Bid - $900,000

$800
$600
$400
$200
$0
Market Quotes

FMBI
Valuation Estimates for Warrant
($ Thousands)

Third Party

Model Valuation

Low

High

Estimate

Details

Market Quotes

$451

$1,788

$939

Four market indications

Third Party

$326

$1,266

$718

External asset manager's valuation estimates

Model Valuation

$436

$1,415

$835

Binomial option model adjusted for American style options

WARRANT DISPOSITION REPORT – UPDATE JUNE 30, 2012

110

North Central Bancshares, Inc. (FFFD)
Repurchase of FFFD Warrant
On January 4, 2012, North Central Bancshares, Inc. (FFFD) agreed to pay $600,000 for the warrant held by
Treasury which entitled the holder of the warrant to purchase 99,157 shares of FFFD at a strike price of $15.43
per share. The warrant had an expiration date of January 9, 2019.

$ Thousands
$900

North Central Bancshares, Inc. (FFFD)
Fair Market Value Estimates of US Treasury's Warrant Position

$800

$700

$600
Final Bid - $600,000
$500
Second Bid - $500,000
$400
First Bid - $396,628
$300

$200
Market Quotes

FFFD
Valuation Estimates for Warrant
($ Thousands)

Third Party

Model Valuation

Low

High

Estimate

Details

Market Quotes

$389

$752

$603

Four market indications

Third Party

$402

$639

$513

External asset manager's valuation estimates

Model Valuation

$472

$683

$574

Binomial option model adjusted for American style options

WARRANT DISPOSITION REPORT – UPDATE JUNE 30, 2012

111

Pathfinder Bancorp, Inc. (PBHC)
Repurchase of PBHC Warrant
On January 27, 2012, Pathfinder Bancorp, Inc. (PBHC) agreed to pay $537,633 for the warrant held by
Treasury which entitled the holder of the warrant to purchase 154,354 shares of PBHC at a strike price of $6.58
per share. The warrant had an expiration date of September 11, 2019.

$ Thousands
$750

Pathfinder Bancorp, Inc. (PBHC)
Fair Market Value Estimates of US Treasury's Warrant Position

$700
$650
$600
$550
Final Bid - $537,633
$500
$450
First Bid - $453,801
$400
$350
$300
Market Quotes

PBHC
Valuation Estimates for Warrant
($ Thousands)

Third Party

Model Valuation

Low

High

Estimate

Details

Market Quotes

$450

$543

$488

Three market indications

Third Party

$520

$642

$580

External asset manager's valuation estimates

Model Valuation

$413

$522

$467

Binomial option model adjusted for American style options

WARRANT DISPOSITION REPORT – UPDATE JUNE 30, 2012

112

Peoples Bancorp, Inc. (PEBO)
Repurchase of PEBO Warrant
On February 3, 2012, Peoples Bancorp, Inc. (PEBO) agreed to pay $1.20 million for the warrant held by
Treasury which entitled the holder of the warrant to purchase 313,505 shares of PEBO at a strike price of
$18.66 per share. The warrant had an expiration date of January 30, 2019.

$ Thousands
$1,600

Peoples Bancorp Inc. (PEBO)
Fair Market Value Estimates of US Treasury's Warrant Position

$1,500
$1,400
$1,300
Final Bid - $1,200,724

$1,200
$1,100

Second Bid - $950,000

$1,000
$900
$800
$700
$600

First Bid - $475,000

$500
$400
$300
$200

Market Quotes

PEBO
Valuation Estimates for Warrant
($ Thousands)

Third Party

Model Valuation

Low

High

Estimate

Details

Market Quotes

$633

$1,236

$1,008

Three market indications

Third Party

$875

$1,376

$1,122

External asset manager's valuation estimates

Model Valuation

$863

$1,341

$1,101

Binomial option model adjusted for American style options

WARRANT DISPOSITION REPORT – UPDATE JUNE 30, 2012

113

New Hampshire Thrift Bancshares, Inc. (NHTB)
Repurchase of NHTB Warrant
On February 9, 2012, New Hampshire Thrift Bancshares, Inc. (NHTB) agreed to pay $737,100 for the warrant
held by Treasury which entitled the holder of the warrant to purchase 184,275 shares of NHTB at a strike price
of $8.14 per share. The warrant had an expiration date of January 16, 2019.

$ Thousands
$1,200

New Hampshire Thrift Bancshares (NHTB)
Fair Market Value Estimates of US Treasury's Warrant Position

$1,100
$1,000
$900
$800

Final Bid - $737,100

$700
$600
First Bid - $552,825

$500
$400
$300
$200
Market Quotes

NHTB
Valuation Estimates for Warrant
($ Thousands)

Third Party

Model Valuation

Low

High

Estimate

Details

Market Quotes

$382

$752

$633

Four market indications

Third Party

$717

$866

$771

External asset manager's valuation estimates

Model Valuation

$713

$788

$713

Binomial option model adjusted for American style options

WARRANT DISPOSITION REPORT – UPDATE JUNE 30, 2012

114

Lakeland Bancorp, Inc. (LBAI)
Repurchase of LBAI Warrant
On February 24, 2012, Lakeland Bancorp, Inc. (LBAI) agreed to pay $2.80 million for the warrant held by
Treasury which entitled the holder of the warrant to purchase 997,050 shares of LBAI at a strike price of $8.876
per share. The warrant had an expiration date of February 6, 2019.

$ Thousands
$3,300

Lakeland Bancorp, Inc. (LBAI)
Fair Market Value Estimates of US Treasury's Warrant Position

$3,100
$2,900

Final Bid - $2,800,000

$2,700
$2,500
$2,300
$2,100
First Bid - $2,043,636

$1,900
$1,700
$1,500

Market Quotes

LBAI
Valuation Estimates for Warrant
($ Thousands)

Third Party

Model Valuation

Low

High

Estimate

Details

Market Quotes

$2,362

$2,933

$2,662

Four market indications

Third Party

$2,114

$3,051

$2,582

External asset manager's valuation estimates

Model Valuation

$2,157

$3,004

$2,572

Binomial option model adjusted for American style options

WARRANT DISPOSITION REPORT – UPDATE JUNE 30, 2012

115

Peapack-Gladstone (PGC)
Repurchase of PGC Warrant
On March 26, 2012, Peapack-Gladstone Financial Corporation (PGC) agreed to pay $110,000 for the warrant
held by Treasury which entitled the holder of the warrant to purchase 150,296 shares of PGC at a strike price of
$28.629 per share. The warrant had an expiration date of January 9, 2019.

$ Thousands
$225

Peapack-Gladstone Financial Corporation (PGC)
Fair Market Value Estimates of US Treasury's Warrant Position

$200
$175
$150
$125

Final Bid - $110,000

$100
Fourth Bid - $95,000

Third Bid - $75,000

$75

Second Bid - $70,000
$50
First Bid - $40,000
$25
$0
Market Quotes

PGC
Valuation Estimates for Warrant
($ Thousands)

Third Party

Model Valuation

Low

High

Estimate

Details

Market Quotes

$51

$87

$73

Three market indications

Third Party

$44

$182

$102

External asset manager's valuation estimates

Model Valuation

$42

$183

$97

Binomial option model adjusted for American style options

WARRANT DISPOSITION REPORT – UPDATE JUNE 30, 2012

116

The Connecticut Bank and Trust Company/Berkshire Hills Bancorp, Inc.
(CTBC/BHLB)
Repurchase of CTBC/BHLB Warrant
On March 23, 2012, Berkshire Hills Bancorp, Inc. (BHLB) agreed to pay $792,783 for the Connecticut Bank
and Trust Company (CTBC) warrant held by Treasury which entitled the holder of the warrant to purchase
175,742 shares of CTBC at a strike price of $4.65 per share. The warrant had an expiration date of December
19, 2018.

$ Thousands
$900

The Connecticut Bank and Trust Company (CTBC/BHLB)
Fair Market Value Estimates of US Treasury's Warrant Position

$850
Final Bid - $792,783

$800
$750
$700
$650
$600
$550
$500

Market Quotes

CTBC / BHLB
Valuation Estimates for Warrant
($ Thousands)

Third Party

Model Valuation

Low

High

Estimate

Details

Market Quotes

$645

$791

$716

Four market indications

Third Party

$716

$775

$743

External asset manager's valuation estimates

Model Valuation

$733

$825

$780

Binomial option model adjusted for American style options

WARRANT DISPOSITION REPORT – UPDATE JUNE 30, 2012

117

Regions Financial Corp. (RF)
Repurchase of RF Warrant
On April 25, 3012, Regions Financial Corp. (RF)agreed to pay $45.00 million for the warrant held by Treasury
which entitled the holder of the warrant to purchase 48,253,677 shares of RF at a strike price of $10.88 per
share. The warrant had an expiration date of November 14, 2018.

$ Thousands
$80,000

Regions Financial Corp. (RF)
Fair Market Value Estimates of US Treasury's Warrant Position

$ 000s

$70,000
$60,000
$50,000

Final Bid - $45,000,000

$40,000
Second Bid - $39,000,000
$30,000

First Bid - $32,000,000

$20,000
$10,000
$0
Market Quotes

RF
Valuation Estimates for Warrant
($ Thousands)

Third Party

Model Valuation

Low

High

Estimate

Details

Market Quotes

$32,102

$75,783

$51,018

Three market indications

Third Party

$13,994

$41,016

$28,470

External asset manager's valuation estimates

Model Valuation

$24,171

$55,731

$39,854

Binomial option model adjusted for American style options

WARRANT DISPOSITION REPORT – UPDATE JUNE 30, 2012

118

Park National Corporation (PRK)
Repurchase of PRK Warrant
On April 25, 2012, Park National Corporation (PRK) $2.84 million for the warrant held by Treasury which
entitled the holder of the warrant to purchase 227,376 shares of PRK at a strike price of $65.97 per share. The
warrant had an expiration date of December 23, 2018.

$ Thousands
$4,000

Park National Corporation (PRK)
Fair Market Value Estimates of US Treasury's Warrant Position

$3,500

$3,000
Final Bid - $2,842,000
$2,500

$2,000

$1,500

$1,000
Market Quotes

PRK
Valuation Estimates for Warrant
($ Thousands)

Third Party

Model Valuation

Low

High

Estimate

Details

Market Quotes

$2,058

$2,408

$2,185

Three market indications

Third Party

$1,880

$3,257

$2,556

External asset manager's valuation estimates

Model Valuation

$1,768

$3,145

$2,449

Binomial option model adjusted for American style options

WARRANT DISPOSITION REPORT – UPDATE JUNE 30, 2012

119

MB Financial, Inc. (MBFI)
Repurchase of MBFI Warrant
On April 26, 2012, MB Financial, Inc. (MBFI) agreed to pay $1.52 million for the warrant held by Treasury
which entitled the holder of the warrant to purchase 506,024 shares of MBFI at a strike price of $29.05 per
share. The warrant had an expiration date of December 5, 2018.

$ Thousands
$2,500

MB Financial Inc. (MBFI)
Fair Market Value Estimates of US Treasury's Warrant Position

$2,000

Final Bid - $1,518,072
$1,500
Second Bid - $1,300,482
$1,000

First Bid - $541,446
$500

$0
Market Quotes

MBFI
Valuation Estimates for Warrant
($ Thousands)
Market Quotes
Third Party
Model Valuation

Third Party

Model Valuation

Low

High

Estimate

Details

$948

$1,800

$1,375

Three market indications

$1,098

$2,373

$1,706

External asset manager's valuation estimates

$929

$2,079

$1,481

Binomial option model adjusted for American style options

WARRANT DISPOSITION REPORT – UPDATE JUNE 30, 2012

120

Seacoast Banking Corporation of Florida (SBCF)
Repurchase of SBCF Warrant
On May 15, 2012, Seacoast Banking Corporation of Florida (SBCF) agreed to pay $55,000 for the warrant held
by Treasury which entitled the holder of the warrant to purchase 589,623 shares of SBCF at a strike price of
$6.36 per share. The warrant had an expiration date of December 19, 2018.

$Thousands
$80

Seacoast Banking Corporation of Florida (SBCF)
Fair Market Value Estimates of US Treasury's Warrant Position

$70
$60
Final Bid - $55,000

$50
$40

First Bid - $40,000
$30
$20
$10
$0
Market Quotes

SBCF
Valuation Estimates for Warrant
($ Thousands)

Third Party

Model Valuation

Low

High

Estimate

Details

Market Quotes

$20

$68

$40

Five market indications

Third Party

$0

$24

$8

External asset manager's valuation estimates

Model Valuation

$17

$65

$38

Binomial option model adjusted for American style options

WARRANT DISPOSITION REPORT – UPDATE JUNE 30, 2012

121

Wilshire Bancorp (WIBC)
Repurchase of WIBC Warrant
On June 11, 2012, Wilshire Bancorp (WIBC) agreed to pay $760,000 for the warrant held by Treasury which
entitled the holder of the warrant to purchase 494,460 shares of WIBC at a strike price of $9.82 per share. The
warrant had an expiration date of December 12, 2018.

$ Thousands
$1,000

Wilshire Bancorp, Inc. (WIBC)
Fair Market Value Estimates of US Treasury's Warrant Position

$900
$800
Final Bid - $760,000

$700

First Bid - $664,622

$600
$500
$400
$300
$200
$100
$0
Market Quotes

WIBC
Valuation Estimates for Warrant
($ Thousands)

Third Party

Model Valuation

Low

High

Estimate

Details

Market Quotes

$477

$698

$570

Three market indications

Third Party

$416

$884

$637

External asset manager's valuation estimates

Model Valuation

$581

$761

$670

Binomial option model adjusted for American style options

WARRANT DISPOSITION REPORT – UPDATE JUNE 30, 2012

122

Capital One Financial Corp. (COF)
Sale of COF Warrant
On December 3, 2009, Treasury auctioned the Capital One Financial Corp. (COF) warrant for $148.73 million
in gross proceeds. The warrant entitled the holder to purchase 12,657,960 shares of COF at a strike price of
$42.13 per share and expired on November 14, 2018

$ Thousands

Capital One Financial (COF)
Estimates of Fair Market Value of US Treasury's Warrant Position

$175,000

$150,000

$125,000

$100,000

$75,000
First Bid - $46,500,000

$50,000

$25,000

$0
Market Quotes

COF
Valuation Estimates for Warrant
($ Thousands)

Third Party

Model Valuation

Low

High

Estimate

Details

$1,500

$70,400

$30,200

Seven market indications

Third Party

$107,100

$148,100

$124,500

External asset manager's valuation estimates

Model Valuation

$85,800

$130,700

$107,500

Binomial option model adjusted for American style options

Market Quotes

Note: Above analysis was done to evaluate COF’s bid on 6/30/09 and is not directly comparable to the auction results on 12/3/09 as
market conditions changed over the intervening five months. In particular, COF’s stock price appreciated 69 percent while short-term
implied volatility in the sock declined slightly.

WARRANT DISPOSITION REPORT – UPDATE JUNE 30, 2012

123

JP Morgan Chase & Co. (JPM)
Sale of JPM Warrant
On December 10, 2009, Treasury auctioned the JPMorgan Chase & Co. (JPM) warrant for $950.32 million in
gross proceeds. The warrant entitled the holder to purchase 88,401,697 shares of JPM at a strike price of
$42.42 per share and expired on October 28, 2018.

$ Thousands
$1,400,200

JPMorgan (JPM)
Estimates of Fair Market Value of US Treasury's Warrant Position

$1,200,200

$1,000,200

$800,200
First Bid - $825,539,247
$600,200

$400,200

$200,200

$200
Market Quotes

JPM
Valuation Estimates for Warrant
($ Thousands)

Third Party

Model Valuation

Low

High

Estimate

Details

Market Quotes

$488,000

$1,137,000

$658,000

Seven market indications

Third Party

$875,000

$1,252,000 $1,063,000 External asset manager's valuation estimates

Model Valuation

$900,000

$1,097,000

$998,000

Binomial option model adjusted for American style options

WARRANT DISPOSITION REPORT – UPDATE JUNE 30, 2012

124

TCF Financial Corporation (TCB)
Sale of TCB Warrant
On December 15, 2009, Treasury auctioned the TCF Financial Corporation (TCB)warrant for $9.59 million in
gross proceeds. The warrant entitled the holder to purchase 3,199,988 shares of TCB at a strike price of $16.93
per share and expired on November 14, 2018.

$ Thousands

TCF Financial (TCB)
Estimates of Fair Market Value of US Treasury's Warrant Position

$25,000

$20,000

$15,000

$10,000

$5,000

First Bid - $3,200,000

$0
Market Quotes

TCB
Valuation Estimates for Warrant
($ Thousands)

Third Party

Model Valuation

Low

High

Estimate

Details

Market Quotes

$12,146

$20,480

$15,942

Three market indications

Third Party

$13,376

$19,072

$16,224

External asset manager's valuation estimates

Model Valuation

$11,349

$17,234

$14,282

Binomial option model adjusted for American style options

Note: Above analysis was done to evaluate TCB’s bid on 5/5/09 and is not directly comparable to the auction results on 12/15/09 as
market conditions changed over the intervening seven months. In particular, TCB’s stock price declined 16 percent while short-term
implied volatility in the stock declined more than 40 percent.

WARRANT DISPOSITION REPORT – UPDATE JUNE 30, 2012

125

Valley National Bancorp (VLY)
Sale of VLY Warrant
On May 18, 2010 Treasury auctioned the Valley National Bancorp (VLY)warrant for $5.57 million in gross
proceeds. The warrant entitled the holder to purchase 2,532,542 shares of VLY at a strike price of $17.77 per
share and expired on November 14, 2018.

$ Thousands
$8,500

Valley National Bancorp (VLY)
Fair Market Value Estimates of US Treasury's Warrant Position

$7,500
$6,500
$5,500
$4,500
$3,500
$2,500
First Bid - $2,291,348
$1,500
$500
Market Quotes

VLY
Valuation Estimates for Warrant
($ Thousands)

Third Party

Model Valuation

Low

High

Estimate

Details

$723

$3,714

$1,801

Three market indications

Third Party

$4,607

$7,791

$6,160

External asset manager's valuation estimates

Model Valuation

$2,723

$6,564

$4,616

Binomial option model adjusted for American style options

Market Quotes

Note: The above analysis was done to evaluate VLY’s bid on 1/7/10 and is not directly comparable to the auction results on 5/18/10
as market conditions changed over the intervening five months.

WARRANT DISPOSITION REPORT – UPDATE JUNE 30, 2012

126

Wells Fargo & Company (WFC)
Sale of WFC Warrant
On May 20, 2010, Treasury auctioned the Wells Fargo & Company (WFC) warrant for $849.02 million in gross
proceeds. The warrant entitled the holder to purchase 110,261,688 shares of WFC at a strike price of $34.01
per share and expired on October 28, 2010.

$ Thousands

Wells Fargo & Company (WFC)
Fair Market Value Estimates of US Treasury's Warrant Position

$1,200,000
$1,100,000
$1,000,000
$900,000
$800,000

Third Bid - $750,000,000

$700,000
Second Bid - $700,000,000
$600,000
First Bid - $593,600,000
$500,000
$400,000
$300,000
Market Quotes

WFC
Valuation Estimates for Warrant
($ Thousands)

Third Party

Model Valuation

Low

High

Estimate

Details

Market Quotes

$496,182

$871,075

$686,201

Seven market indications

Third Party

$690,000

$1,071,000

$879,000

External asset manager's valuation estimates

Model Valuation

$551,000

$946,000

$739,000

Binomial option model adjusted for American style options

Note: The above analysis was done to evaluate WFC’s bid on 2/22/10 and is not directly comparable to the auction results on 5/20/10
as market conditions changed over the intervening three months. When considering WFC’s offer to repurchase its warrant, Treasury
concluded the market value realized through an auction would likely be in the high end of the valuation range. The results of past
auctions have indicated that warrants associated with large well-known companies, such as WFC, attract high levels of investor
interest and competitive bidding.

WARRANT DISPOSITION REPORT – UPDATE JUNE 30, 2012

127

Sterling Bancshares, Inc. (SBIB)
Sale of SBIB Warrant
On June 9, 2010, Treasury auctioned the Sterling Bancshares, Inc. (SBIB) warrant for $3.01 million in gross
proceeds. The warrant entitled the holder to purchase 2,615,557 shares of SBIB at a strike price of $7.18 per
share and expired on December 12, 2018

$ Thousands
$10,000

Sterling Bancshares, Inc. (SBIB)
Fair Market Value Estimates of US Treasury's Warrant Position

$9,000
$8,000
$7,000
$6,000
$5,000
First Bid - $4,000,000
$4,000
$3,000
$2,000
Market Quotes

SBIB
Valuation Estimates for Warrant
($ Thousands)

Third Party

Model Valuation

Low

High

Estimate

Details

Market Quotes

$2,877

$6,120

$4,467

Five market indications

Third Party

$6,828

$9,092

$7,955

External asset manager's valuation estimates

Model Valuation

$5,491

$6,458

$5,988

Binomial option model adjusted for American style options

Note: The above analysis was done to evaluate SBIB’s bid on 6/5/09 and is not directly comparable to the auction results on 6/9/10 as
market conditions changed over the intervening twelve months. Specifically, SBIB’s stock price declined 28 percent from $7.02 on
6/5/09 to $5.00 on 6/9/10.

WARRANT DISPOSITION REPORT – UPDATE JUNE 30, 2012

128

Boston Private Financial Holdings, Inc. (BPFH)
Sale of BPFH Warrant
On February 1, 2011, Treasury auctioned the Boston Private Financial Holdings, Inc. (BPFH) warrant for $6.35
million in gross proceeds. The warrant entitled the holder to purchase 2,887,500 shares of BPFH at a strike
price of $8.00per share and expired on November 21, 2018.

$ Thousands
$11,000

Boston Private Financial Holdings (BPFH)
Fair Market Value Estimates of US Treasury's Warrant Position

$10,000
$9,000
$8,000
$7,000
$6,000
$5,000
$4,000
First Bid - $4,300,000
$3,000
$2,000
$1,000
Market Quotes

BPFH
Valuation Estimates for Warrant
($ Thousands)

Third Party

Model Valuation

Low

High

Estimate

Details

Market Quotes

$7,125

$9,818

$8,391

Three market indications

Third Party

$4,780

$6,950

$5,852

External asset manager's valuation estimates

Model Valuation

$6,073

$8,493

$7,273

Binomial option model adjusted for American style options

Note: The above analysis was done to evaluate BPFH’s bid on 7/12/10 and is not directly comparable to the auction results on
2/01/11 as market conditions changed over the intervening seven months.

WARRANT DISPOSITION REPORT – UPDATE JUNE 30, 2012

129

Bank of Marin Bancorp (BMRC)
Sale of BMRC Warrant
On November 17, 2011, Treasury auctioned the Bank of Marin Bancorp (BMRC) warrant for $1.70 million in
gross proceeds. The warrant entitled the holder to purchase 154,908 shares of BMRC at a strike price of $11.00
per share and expired on December 5, 2018

$ Thousands
$2,500

Bank of Marin Bancorp (BMRC)
Fair Market Value Estimates of US Treasury's Warrant Position

$2,300
$2,100
$1,900
$1,700
$1,500

First Bid - $1,368,000

$1,300
$1,100
$900
$700
Market Quotes

BMRC
Valuation Estimates for Warrant
($ Thousands)

Third Party

Model Valuation

Low

High

Estimate

Details

Market Quotes

$1,576

$2,064

$1,870

Four market indications

Third Party

$1,463

$2,029

$1,743

External asset manager's valuation estimates

Model Valuation

$1,507

$2,028

$1,764

Binomial option model adjusted for American style options

WARRANT DISPOSITION REPORT – UPDATE JUNE 30, 2012

130

First Constitution Bancorp (FCCY)
Sale of FCCY Warrant
On November 17, 2011, Treasury auctioned the First Constitution Bancorp (FCCY) warrant for $326,576 in
gross proceeds. The warrant entitled the holder to purchase 231,782 shares of FCCY at a strike price of $7.77
per share and expired on December 23, 2018.

$ Thousands
$800

1st Constitution Bancorp (FCCY)
Fair Market Value Estimates of US Treasury's Warrant Position

$700

$600

$500
Second Bid - $415,500
$400

$300
First Bid - $216,500
$200

$100
Market Quotes

FCCY
Valuation Estimates for Warrant
($ Thousands)

Third Party

Model Valuation

Low

High

Estimate

Details

Market Quotes

$533

$632

$583

Two market indications

Third Party

$503

$687

$649

External asset manager's valuation estimates

Model Valuation

$443

$581

$529

Binomial option model adjusted for American style options

WARRANT DISPOSITION REPORT – UPDATE JUNE 30, 2012

131

First Busey Corporation (BUSE)
Sale of BUSE Warrant
On November 17, 2011, Treasury auctioned the First Busey Corporation (BUSE) warrant for $63,677 in gross
proceeds. The warrant entitled the holder to purchase 573,833 shares of BUSE at a strike price of $13.07 per
share and expired on March 6, 2019.

$ Thousands

First Busey Corporation (BUSE)
Fair Market Value Estimates of US Treasury's Warrant Position

$400
$350
$300
$250
$200
$150
$100
Second Bid - $57,833
$50
First Bid - $41,000
$0
Market Quotes

BUSE
Valuation Estimates for Warrant
($ Thousands)

Third Party

Model Valuation

Low

High

Estimate

Details

Market Quotes

$181

$332

$259

Three market indications

Third Party

$52

$230

$126

External asset manager's valuation estimates

Model Valuation

$79

$271

$166

Binomial option model adjusted for American style options

WARRANT DISPOSITION REPORT – UPDATE JUNE 30, 2012

132

Western Alliance Bancorporation (WAL)
Sale of WAL Warrant
On November 17, 2011, Treasury auctioned the Western Alliance Bancorporation (WAL) warrant for $415,000
in gross proceeds. The warrant entitled the holder to purchase 787,107 shares of WAL at a strike price of
$13.34 per share and expired on November 21, 2018.

$ Thousands
$1,400

Western Alliance Bancorporation (WAL)
Fair Market Value Estimates of US Treasury's Warrant Position

$1,200

$1,000

Third Bid - $750,000

$800

$600

Second Bid - $650,000

$400
First Bid - $320,000
$200

$0
Market Quotes

WAL
Valuation Estimates for Warrant
($ Thousands)

Third Party

Model Valuation

Low

High

Estimate

Details

Market Quotes

$314

$1,256

$849

Three market indications

Third Party

$433

$937

$700

External asset manager's valuation estimates

Model Valuation

$563

$1,098

$823

Binomial option model adjusted for American style options

WARRANT DISPOSITION REPORT – UPDATE JUNE 30, 2012

133

Appendix III – Outstanding Warrants

WARRANT DISPOSITION REPORT – UPDATE JUNE 30, 2012

134

Outstanding Warrant Portfolio
The table below lists the outstanding warrants held in institutions that have fully redeemed the CPP investment
as of June 30, 2012.

Institution Name

Ticker

BCSB Bancorp, Inc.
Commerce National Bank
The First Bancshares, Inc.*
First M&F Corporation*
S&T Bancorp, Inc.
Security Federal Corporation*
Southern Missouri Bancorp, Inc.
StellarOne Corporation
The Bank of Kentucky Financial Corporation
The Elmira Savings Bank, FSB
TowneBank
United Bancorporation of Alabama, Inc.*
Valley National Bancorp (State Bancorp, Inc.)
Heritage Commerce Corp.
Ameris Bancorp**
Banner Corporation**
Taylor Capital, Inc.**
Farmers Capital Bank Corporation**
BBCN Bancorp, Inc. (Center Financial Corporation)
BBCN Bancorp, Inc. (formerly Nara Bancorp, Inc.)
LNB Bancorp, Inc.**
First Defiance Financial Corp.**
First Financial Holdings, Inc.**
Fidelity Southern Corporation***
Pinnacle Financial Partners, Inc.
C&F Financial Corporation
Peoples Bancorp of North Carolina, Inc.***
MainSource Financial Group, Inc.**
First Citizens Banc Corp.***
MetroCorp Bancshares, Inc.***
First Capital Bancorp, Inc.**
United Bancorp, Inc.**
Mercantile Bank Corporation
Pulaski Financial Corp.***
WSFS Financial Corporation**
Firstbank Corporation***
Southern First Bancshares, Inc.***
TOTAL

BCSB
CNBF
FBMS
FMFC
STBA
SFDL
SMBC
STEL
BKYF
ESBK
TOWN
UBAB
VLY
HTBK
ABCB
BANR
TAYC
FFKT
BBCN
BBCN
LNBB
FDEF
FFCH
LION
PNFP
CFFI
PEBK
MSFG
FCZA
MCBI
FCVA
UBMI
MBWM
PULB
WSFS
FBMI
SFST
37

Preferred
Repurchase
Date
1/26/2011
10/7/2009
9/29/2010
9/29/2010
12/7/2011
9/29/2010
7/21/2011
12/28/2011
11/23/2011
8/25/2011
9/22/2011
9/3/2010
12/14/2011
3/7/2012
6/19/2012
4/3/2012
6/19/2012
6/19/2012
6/27/2012
6/27/2012
6/19/2012
6/19/2012
4/3/2012
7/3/2012
6/20/2012
4/11/2012
7/3/2012
4/3/2012
7/3/2012
7/3/2012
6/19/2012
6/19/2012
6/6/2012
7/3/2012
4/3/2012
7/3/2012
7/3/2012

Preferred Investment
Redeemed/Received
through Auction
($thousands)
10,800
5,000
5,000
30,000
108,676
18,000
9,550
30,000
34,000
9,090
76,458
10,300
36,842
40,000
47,665
108,072
92,254
21,864
55,000
67,000
21,594
35,084
55,926
42,758
95,000
20,000
23,034
52,277
20,690
43,490
9,931
16,750
21,000
28,460
47,435
30,588
15,404

Warrant
Shares
183,465
87,209
54,705
513,113
517,012
137,966
114,326
302,623
274,784
116,538
554,330
108,264
488,848
462,963
698,554
243,998
1,462,647
223,992
337,480
521,266
561,343
550,595
241,696
2,462,439
267,455
167,504
357,234
571,906
469,312
771,429
250,947
311,492
616,438
778,421
175,105
578,947
399,970

Strike
Price
$8.83
8.60
13.71
8.77
31.53
19.57
12.53
14.87
18.56
11.70
20.69
14.27
11.31
12.96
11.17
76.23
10.75
20.09
12.22
9.64
6.74
10.08
20.17
2.94
26.64
17.91
10.52
14.95
7.41
8.75
6.55
9.92
5.11
6.27
45.08
8.55
6.49

$1,394,993

QEO? (i.e.
warrants cut
by 50%)
Yes
Yes
Yes
Yes
4

*Institution converted to the Community Development Capital Initiative program; warrants are still held by the CPP
**CPP preferred auction candidate
***Preferred auction was held on 6/27/12 with a closing date of 7/3/2012

WARRANT DISPOSITION REPORT – UPDATE JUNE 30, 2012

135