MidWestOne pays back TARP funds

The Iowa City-based parent company of MidWestOne Bank has completed the repayment of the capital it received through the TARP (Troubled Assets Relief Program.) in early 2009.

MidWestOne Financial Group Inc. announced on Wednesday, July 6, that it had completed redemption of the 16,000 shares of preferred stock in conjunction with the TARP program with a total value of $16 million, plus $100,000 in accrued dividends

.

MidWestOne issued the 16,000 shares of preferred stock to the Treasury Department in February 2009. During the investment period, MidWestOne paid approximately $2 million in dividends to the Treasury.

"We accepted TARP funds in early 2009 when our national economy was in significant turmoil," said MidWestOne president and CEO Charles Funk in prepared remarks. He said the company was pleased that it had repaid TARP out of internal funds without incurring debt or issuing common stock.

"We believe MidWest One has a bright future and look forward to continuing to serve our many customers in eastern and south central Iowa," Funk said.

The Treasury Department still holds a warrant to buy 198,575 shares of MidWestOne Financial Group common stock, which was also issued in conection with MidWestOne's participation in the Capital Purchase Program. MidWestOne plans to negotiate for the repurchase of the warrant, the company indicated. Because the repurchase price is subject to negotiations, there remains no assurance that the warrant will be repurchased.