Regions Financial Repays TARP Funds

Birmingham-based Regions Financial Corp. says it has completed its repurchase of $3.5 billion of Series A Preferred Stock issued under the U.S. Treasury’s Troubled Asset Relief Program’s (TARP) Capital Purchase Program.

Regions is the second largest financial institution in Arkansas behind Bentonville-based Arvest Bank.

The bank, which recently completed the sale of its Morgan Keegan investment division to Raymond James Co., say it has fully repaid its borrowed funds from the government. That transaction was worth roughly $1.2 billion.

Regions also recently completed a $900 million common equity offering.

TARP funds were borrowed by many banks during the financial crisis of 2008-09. Several institutions used the money to boost loan loss reserves related to financially troubled mortgage-backed securities. Other institutions used the funds to assist with purchases of failing banks and to ensure stability for the overall financial markets.