Thursday, March 18, 2010

Banks failing to pay TARP dividends increases to 82

by Bill McBride on 3/18/2010 09:24:00 AM

From Binyamin Appelbaum and David Cho at the WaPo: Small banks lag in repaying Treasury for bailout funds

[H]undreds of community banks have yet to return their bailouts. More than 10 percent of the 700 banks that got federal bailouts and are still holding the money even failed to pay the government a quarterly dividend in February. The list of 82 delinquent banks is significantly longer than the 55 banks that failed to make payments in November, according to an analysis by Linus Wilson, a finance professor at the University of Louisiana at Lafayette.

Wilson calculated that the missed payments totaled $78.1 million in February and that banks now have missed a total of $205 million in dividend payments to the government.

Many of the community banks still holding aid from the Troubled Assets Relief Program are struggling with losses on real estate development loans.
Here is the report from the Treasury.

And in excel format under Dividend and Interest Reports.

There are three permanent deadbeats on the list: CIT Group (filed bankruptcy and wiped out its $2.3 billion in TARP debt), UCBH Holdings Inc. was seized by the FDIC (TARP lost $298.7 million), and Pacific Coast National Bank was also seized by the FDIC (TARP lost $4.1 million).