Treasury announces auctions for preferred stock of six financial institutions

This story appeared in Bank Digest.

The Treasury Department has announced auctions for all of its Troubled Asset Relief Program's Capital Purchase Program preferred stock (CPP Securities) in the following six institutions: Centrue Financial Corporation, Ottawa, Ill.; DeSoto County Bank, Horn Lake, Miss.; First Banks, Inc., Clayton, Mo.; RCB Financial Corporation, Rome, Ga.; Reliance Bancshares, Inc., Frontenac, Mo.; and Severn Bancorp, Inc., Annapolis, Md. The offerings are expected to price through a modified Dutch auction. The auctions began on Sept. 12, 2013, and will end on Sept. 17, 2013. During the auction period, potential bidders for the CPP Securities will be able to place bids on the offered CPP Securities (in increments of whole shares or per $1,000 aggregate principal amount, as applicable) at any price per share or per $1,000 aggregate principal amount, as applicable, and in increments of $0.01 at or above the minimum prices set forth in the applicable bidder letter agreement provided to the potential bidders, the Treasury Department indicated. Investors may bid on individual or multiple CPP Securities.