Friday, April 13, 2012

Yadkin Valley Bank prepares to auction off TARP money

Yadkin Valley Financial Corp. announced Friday that it is preparing for the federal government to auction off its federal bailout investments. While that would mean the Elkin-based bank will exit the TARP program, it also would likely mean the government would take a loss.

The bank bailout essentially involved the government buying shares of preferred stock, valued at $1,000 a piece. Yadkin Valley received $49 million, which it has yet to begin paying back.

The Treasury said last month that it is looking to speed its exit from the politically unpopular program. A number of other banks have already auctioned off their TARP investments. In a securities filing Friday, Yadkin Valley sets out terms for it to be included in such an auction.

No date has been set for the auction, and the bank said it is not a sure thing.

"We are filing at this time given the current activity we've seen from Treasury regarding TARP shares," CEO Joe Towell said in a statement. "This allows us to be ready should an opportunity be made available to us."

The bank operates 34 branches across the Piedmont and mountain region of North Carolina and in York and Cherokee counties in South Carolina. It operates American Community Bank branches in the Charlotte area.


Anonymous said...

Randy Helton is the only one who made out like a bandit in the sale of ACB to Yadkin Valley!