(Source: The Post and Courier)
By John P. McDermott, The Post and Courier, Charleston, S.C.
Mar. 16--The two Charleston-area bank owners that have raised money by selling stock under the U.S. Treasury Department's Troubled Asset Relief Program have made their first quarterly dividend payments on those shares.
First Financial Holdings Inc., parent of First Federal of Charleston, said its $632,000 check was cut in mid-February. The Charleston-based company said it also filed a report this month outlining its plans to use the $65 million it received under TARP "to bolster loan growth and provide enhanced flexibility for future growth."
Also, Mount Pleasant-based Tidelands Bancshares Inc. said it made its first dividend payment of about of about $180,000 last month.
First Financial raised $65 million in December by selling preferred shares to Treasury. Tidelands Bank's parent raised about $14.5 million in TARP money that same month.
In exchange for the funding, the two banks agreed to pay the federal government a 5 percent annual dividend on those shares for the first five years. After that, the rate increases would increase to 9 percent. They also gave the government rights to buy blocks of common stock at fixed prices.
The banks can redeem the government's shares, but have no plans to do so right now. Some lenders around the country have indicated they want to unwind their TARP dealings.
At least 16 South Carolina-based banks have received $610.2 million by selling shares to Treasury under a key part of the federal government's economic stimulus plan. The idea was to infuse U.S. banks with more money and loosen up more credit for borrowers.
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