Another Memphis bank is TARP-less.
Magna Bank has redeemed the shares Uncle Sam bought from the bank a few years ago as the economy was in danger of becoming completely unmoored and an industry-wide rescue of the banking sector became necessary.
Magna issued 14,485 preferred shares to the U.S. Treasury in December 2008. As of June 30, Magna had redeemed all but 7,575 of those shares.
The U.S. Treasury informed Magna at the end of July that its application for participation in the Small Business Lending fund had been preliminarily approved, so Magna used that money to help redeem the rest of the Troubled Asset Relief Program (TARP) shares. Meaning the bank can now return to business as usual, in a manner of speaking.
Of the three largest banks based in Memphis (in descending order: First Tennessee Bank, Independent Bank and Magna Bank) only First Tennessee and Magna accepted a TARP investment.
And both have now repaid it.
Magna’s TARP repayment was part of a wave of TARP repayment by 22 small and community banks that was made possible recently by borrowing from the government’s Small Business Lending Fund.