Regional Banks Already Registering TARP Shares & Warrants (HMNF, MFSF, STL, CJBK, GRNB, PVSA, FISI, TSBK, IBOC)

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We have perused many SEC filings over the years, but it seems that the flood gates are starting to open where regional banks and smaller banks are filing with the SEC to raise capital.  Each one of these look like the securities being registered are cumulative preferred shares and warrants to buy stock under the Fed’s Troubled Asset Relief Program.  But seeing the magnitude of filers and the nominal amounts mentioned is starting to show just how widespread this need for capital is.  Below is a list of the filings we saw from today alone:

  • HMN Financial, Inc. (NASDAQ: HMNF) filed to sell nearly $30 million worth of securities for the Feds.
  • MutualFirst Financial, Inc. (NASDAQ: MFSF) filed to sell up to 625,135 shares of common stock and warrants for TARP funds.
  • Sterling Bancorp (NYSE: STL) filed to sell up to $48.3 million atcurrent prices under the cumulative preferred funds for the Feds.
  • Central Jersey Bancorp (NASDAQ: CJBK) filed to sell almost $1.7 million at current prices as part of the plan for the Feds.
  • Green Bankshares, Inc. (NASDAQ: GRNB) filed to sell roughly $83 million under the plan in cumulative preferred and warrants.
  • Parkvale Financial Corporation (NASDAQ: PVSA) filed to sell roughly$4.76 million worth of securities under the plan via warrants andcommon stock.
  • Financial Institutions, Inc. (NASDAQ: FISI) filed to sell roughly $43 million worth of securities under the plan.
  • Timberland Bancorp, Inc. (NASDAQ: TSBK) filed to sell almost $2.7 million under the plan.
  • International Bancshares Corporation (NASDAQ: IBOC) filed to sellalmost $250 million in securities, also under the federal TARP plan.

Get used to filings of this sort.  There are hundreds of institutionsin the TARP and in the rescue plan.  Eventually, they will all have toregister these shares.  The good news is that Uncle Sam might not bethe most opportune securities sellers.

Jon C. Ogg
January 22, 2009