First American Bank Corp. in Elk Grove Village, Ill., has repaid $15 million of the $50 million it received from the Troubled Asset Relief Program with funds it raised in a recent stock sale.
The $2.8 billion-asset parent of First American Bank raised $26 million over the summer by issuing 260,000 shares, mostly to existing stockholders. On Wednesday it used a portion of that capital to redeem preferred shares it issued to the Treasury Department in July 2009 and First American's president, John B. Ward, said in an interview that the company was still deciding what to do with the remaining $11 million raised.
Ward said the bank had also not yet determined how it would repay the remaining $35 million in Tarp funds.
