Over the weekend and this morning, eight regional and super regional banks announced their participation in the TARP Capital Purchase Program. These announcements follow in the footsteps of the nine large financial services organizations initially announced as participants in the Capital Purchase Program by Treasury Secretary Paulson and Friday’s announcement by PNC Financial Group, Inc. that it would issue $7.7 billion of preferred stock and related warrants to the U.S. Treasury.
Announcing participation were:
- Capital One Financial Corporation ($3.55 billion);
- Regions Financial Corporation ($3.5 billion);
- SunTrust Banks, Inc. ($3.5 billion; also announcing a 30% reduction in its common stock dividend);
- Fifth Third Bancorp ($3.4 billion);
- KeyCorp ($2.5 billion);
- Huntington Bancshares Incorporated ($1.4 billion);
- First Horizon National Corp. ($866 million); and
- Valley National Bancorp ($330 million).
In announcing their participation, these institutions emphasized the favorable terms and low cost of the Treasury capital as compared to other capital sources in today’s market. Many institutions, including SunTrust, First Horizon and Huntington Bancshares, among others, underscored their already strong capital positions and use of these proceeds to expand lending and pursue other investment opportunities with Valley National touting Treasury’s seal of approval indicating that it had “been chosen as one of the nation’s stronger regional banks to participate in the U.S. Treasury Department’s TARP Capital Purchase program.” These issuances are subject to standard terms and conditions including execution of definitive agreements.