Union Bankshares repays $59 million TARP loan

AP News
Posted: Nov 18, 2009 5:49 PM

Union Bankshares Corp. said Wednesday it has repaid the federal government the $59 million it received last December under the Treasury Department's Troubled Asset Relief Program.

The regional bank said it bought back the preferred stock it had issued to the Treasury, after regulators approved the bank's repayment.

The Bowling Green, Va.-based company said its banks have been "well-capitalized" throughout its participation in the government program, which provided emergency funding to hundreds of banks after last fall's credit crisis.

In mid-September, Union Bankshares completed a public offering of 4.7 million common shares that raised about $59 million after expenses _ which helped the bank pay back the government's investment.

As of late October, the Treasury Department had spent more than $454 billion through TARP programs, with 47 recipients having paid back nearly $73 billion. The program is set to expire Dec. 31.

Union Bankshares shares dipped 11 cents, or about 1 percent, to close earlier at $11.51.