From the Triangle Business Journal, an update to our previous news on regional bank BB&T: 

BB&T Corp. will pay $3.1 billion to buy back preferred stock sold to the federal government, marking the Winston-Salem banking giant’s exit from the Troubled Asset Relief Program (“TARP”).

In a news release issued Wednesday, BB&T (NYSE: BBT) said it also would pay a dividend of about $13.9 million, bringing to $92.7 million the bank’s total amount of dividends paid to the feds.

“This was, in fact, an excellent investment for the American taxpayer,” said BB&T CEO Kelly King. “Our strong capital position allowed us to pay back TARP in a very short amount of time. But what’s important today is that we’ve repaid the government, and now we have a singular focus on the business of serving our clients.

BB&T, which ranks third in market share by deposits in the Raleigh-Durham area, also has informed U.S. Treasury officials of its intent to buy back a warrant that allows the Treasury to purchase as many as 13.9 million shares of BB&T common stock.

The amount of that buyback, which has yet to be determined, will be accounted for in BB&T’s second or third quarter of this year, the bank said.

“Throughout this period, BB&T has experienced very good loan growth,” King said. “We will continue to actively pursue and make every good loan we can find.”

With $143.4 billion in assets, BB&T is the nation’s 10th largest financial holding company.

Tags: BBT, Branch Banking and Trust, TARP, Triangle Business Journal, Troubled Asset Relief Program, warrants

This entry was posted on Wednesday, June 17th, 2009 at 12:04 pm and is filed under economy, finance, stimulus. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.