Greer State Bank’s parent company Greer Bancshares recently reported that it has repaid all of the Troubled Asset Relief Program (TARP) preferred stock through a series of repayments, totaling $10,493,000.
In order to repay the principal and $2,059,000 of deferred and current year dividends in several payments throughout the first seven months of 2014, Greer Bancshares used $6,597,000 in dividends from Greer State Bank as well as its own $5,955,000 with its directors purchasing approximately 40 percent of the subordinated debt. Additionally, Greer Bancshares paid the U.S. Treasury $3,791,000 in dividends since the TARP was issued.
“The TARP investment served a useful purpose when it was issued in 2009, reinforcing our capital during the height of the financial crisis,” said president and CEO George Burdette in a release. “We are pleased that our financial progress has allowed this investment to be repaid, at full face value, along with almost $3.8 million in dividends and interest.”
Instituted in 2008 under then-President George W. Bush, TARP is a U.S. government program to purchase assets and equity from financial institutions in order to strengthen the financial sector.