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As a subscriber you can listen to articles at work, in the car, or while you work out. Subscribe NowOld National Bancorp today repurchased all of the $100 million in preferred, non-voting stock it sold to the U.S. Department of Treasury after deciding it did not need federal assistance from the Troubled Asset Relief Program.
The Evansville-based bank, which was approved to receive up to $150 million in TARP funds, chose in December to accept $100 million in funding.
But a rigorous stress test Old National performed in conjunction with an outside accounting firm on its balance sheet and earnings found the company is well-positioned to withstand current and financial economic challenges without the TARP funds, the bank said in a written statement.
“Repurchasing our preferred stock will enable us to continue to fulfill our mission of serving as a community partner with integrity,” CEO Bob Jones said in the statement.
With $7.9 billion in assets, Old National is the largest bank headquartered in Indiana. It was founded in Evansville in 1834.
Old National’s decision follows a similar decision in February by America Bancorp. The New Castle bank said it decided not to accept $9.8 million in TARP funding because too many restrictions were attached.
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