Monarch Financial repays TARP money to US

AP News
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Posted: Dec 23, 2009 5:16 PM

Regional bank Monarch Financial Holdings Inc. said Wednesday that it has repaid the $14.7 million it owed the U.S. government under the Troubled Asset Relief Program.

Monarch said in a release that it remains well capitalized after the repayment, in part due to a recently completed $20 million public stock offering. Monarch Financial is the holding company for Monarch Bank.

Shares of Monarch rose 1 cent to $6.50 Wednesday.

As part of Monarch's TARP participation, the company also issued the Treasury Department a warrant to purchase 264,706 shares of its common stock at an exercise price of $8.33 per share. Half those warrants were extinguished, and the company said it intends to negotiate for the repurchase of the remaining warrants.

Monarch is among the hundreds of banks that received bailout money through the Troubled Asset Relief Program. The Treasury Department extended a total of about $453 billion to banks, insurers, automakers and other companies under the program. The government has said it expects total bank repayments could reach $175 billion by the end of next year.