Treasury Department intends to auction more TARP preferreds next week

By Stephanie N. Rotondo

Phoenix, Sept. 5 - The Department of the Treasury announced more auctions of its Troubled Asset Relief Program preferred holdings on Wednesday.

Beginning Monday, the Treasury will conduct a modified Dutch auction for preferreds of five banks: Alpine Banks of Colorado of Glenwood Springs, Colo.; First Community Financial Partners Inc. of Joliet, Ill.; F&M Financial Corp. of Clarksville, Tenn.; F & M Financial Corp. of Salisbury, N.C.; and Yadkin Valley Financial Corp. of Statesville, N.C.

Yadkin previously registered its TARP preferreds, including $36 million of series T preferreds and $13.31 million of T-ACB preferreds. The shares have a liquidation preference of $1,000 each. The dividend is fixed at 5% for five years from issuance, at which time it resets to 9%.

The other banks have not yet registered their preferreds or are privately held institutions.

None of the companies will receive any proceeds from the sales.

Bank of America Merrill Lynch and Sandler O'Neill + Partners LP are the auction agents and joint bookrunning managers.

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