"We have more conservative salaries and bonuses than the Wall Street folks have, so that's not an issue here," he said.
Synovus, the state's second-largest bank, received $973 million from the federal government last December. Bank officials say they have decided to keep the money for now, providing time to work though bad loans and return to profitability — and, it's hoped, time for the company's stock price to rebound.
If Synovus were to return the TARP money now, the bank would have to issue stock to rebuild its capital, Anthony said. At today's depressed stock price, such a move would heavily dilute existing shareholders, he said.
"Once we get on an improving track and can begin to see our way to profitability, then we can issue stock and we can raise capital on our own, on more favorable terms," Anthony said.
SunTrust feels the TARP money carries too great a cost. In addition to the strings attached, banks receiving government funds must pay a 5 percent dividend each year. For SunTrust, that amounts to $240 million a year — no chump change for a company that's suffered heavy losses the past two quarters.
SunTrust executives declined to say if they've formally applied to pay back the money.
But the bank seems confident it will win approval. SunTrust recently sold $1.8 billion worth of shares, helping build a robust capital base that company officials said would leave them in sound financial shape even after repaying the government.
United Community, the state's third-biggest bank, received $180 million in TARP funds last December. The money helped shore up a balance sheet battered by soured real estate loans made in suburban Atlanta and the north Georgia mountains.
Rex Schuette, the bank's executive vice president and chief financial officer, said hecan't afford to send the money back yet. Compared to what it would cost for United Community to raise capital on its own, the 5 percent interest on the TARP funds is cheap, he said.
"We all can't wait to get rid of it, but you must balance that on the best interests of your shareholders," Schuette said.
GEORGIA'S TOP TARP-TAKERS
Bank, Amount, Plan
1. SunTrust, Atlanta, $4.84 bil, Return as soon as possible
2. Synovus, Columbus, $973 mil, Hold, for up to several years
3. United Community, Blairsville, $180 mil, Hold, for up to several years
4. Ameris Bancorp, Moultrie, $52 mil, Hold, no timeframe given
5. Fidelity Southern, Atlanta, $48 mil, Hold, no timeframe
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