FACTBOX-U.S. banks line up to repay TARP money

April 9 (Reuters) - A growing number of U.S. banks are paying back or planning to pay back the bailout money they received from the government as they seek to escape the restrictions that come along with the funds.

Some banks have also said they believe repayment of the funds signals the managements' confidence in their capital levels.

While the funds under the Troubled Asset Relief Program, or TARP, were mostly intended for banks weakened by the credit crunch, a significant portion of the $700 billion fund actually went to banks that described themselves as well-capitalized.

Five of these banks have already repaid the entire bailout funds they received, while some others said they plan to pay back and have applied for permission to do so.

The move to repay funds as early as possible could undermine a key pillar of the Obama administration's financial recovery plan -- intended to stabilize the financial system, prevent a collapse of the banking system and bolster lending.

Experts say regulators may not be too keen to let banks repay government funds soon. [ID:nN08512860]

BANKS THAT REPAID TARP MONEY -

* Signature Bank (SBNY.O) based in New York, which has assets worth more than $7 billion, said it repaid $120 million it received from the U.S. department of treasury on March 31.

* Old National Bancorp (ONB.N) based in Evansville, Indiana, which has assets of more than $7 billion, said on March 31 it repaid $100 million in TARP funds.

* IberiaBank (IBKC.O) based in Louisiana, with total assets of over $5 billion, said on March 31 it repaid $90 million.

* Bank of Marin Bancorp (BMRC.O) based in California, which holds assets of $1 billion, said on March 31 it repaid $28 million.

* Sun Bancorp (SNBC.O) based in Vineland, New Jersey, with total assets of more than $3 billion, said on April 8 it repaid $89.3 million.

BANKS THAT PLAN TO REPAY FUNDS -

* TCF Financial Corp (TCB.N) based in Wayzata, Minnesota, with total assets of $16 billion, said on March 2 it filed a notice with the U.S. Treasury to pay back $361.2 million it received as TARP funds.

* Shore Bancshares Inc (SHBI.O) based in Easton, Maryland said on March 26 it filed a notice with the U.S. Treasury to pay back $25 million.

* Somerset Hills Bancorp (SOMH.O) based in Bernardsville, New Jersey, said on April 2 it filed a notice with the U.S. Treasury and the Federal Reserve Bank of New York to pay back $7.4 million it received in TARP funds. (Reporting by Adheesha Sarkar in Bangalore)