* Third straight rise in number of banks missing payments
* First miss for 23 banks
CHARLOTTE, N.C., June 16 More than 90 U.S.
banks and thrifts missed making a May 17 payment to the U.S.
government under its main bank bailout program, signaling a
rising number of lenders are struggling to meet their
The statistics, compiled by SNL Financial LC from U.S.
Treasury data, showed 91 banks and thrifts skipped the May
dividend payment under the Troubled Asset Relief Program, or
TARP. It was the first missed payment for 23 of the banks; for
the others, it was at least their second miss.
The number of banks missing their TARP payments rose for
the third straight quarter. In February, 74 banks deferred
their payments; 55 deferred last November.
SNL Financial's analysis found 20 banks have missed four or
more payments since the program began in 2008, while eight
banks have missed five payments.
Under the TARP program, the U.S. Treasury invested in
preferred shares issued banks looking for funds. The banks were
to make regular dividend payments to the Treasury, and have the
right to repurchase the shares at some point in the future.
While many of the largest U.S. banks easily repaid billions
in TARP aid, more than 600 smaller banks still hold $130
billion from the program, created at the height of the
In some cases, small banks are renegotiating the repayment
Midwest Banc Holdings Inc MBHI.O, for example, agreed to
swap $84.8 million in preferred shares issued under the TARP
program in 2008 for $15.5 million in common shares. That would
have meant an 80 percent loss for the government -- and the
U.S. taxpayer -- on the initial investment. [ID:nN03108978] But
the swap was contingent on the bank raising more private
capital, which it failed to do. Regulators seized the bank in
The next quarterly TARP payments to the U.S. Treasury are
due by Aug. 16.
(Reporting by Joe Rauch; editing by John Wallace)