First Niagara repays $184M in TARP funds - The Business Review (Albany):

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The Lockport, N.Y. bank, which has regionalo headquartersin Albany, redeemed the non-voting senior preferref stock it sold to the Treasurt Department under the government’s Capital Purchase The bank’s management said it believed the company is well positionee to withstand extreme and unprecedentee economic conditions, based on even more severe scenariosa than those used by the Federal Reserve Board in last month’se “stress tests” of the nation’s largest In April, First Niagara (Nasdaq: raised $380 million in a publifc stock offering.
President and CEO John Koelmel said this allowed the bank to replacw the TARP proceeds with money raisedfrom investors, “following the blueprintr laid out by the Treasury when they createfd the Capital Purchase During its seven-month investment in First Niagara, the Treasury earnedf more than $4.8 million in preferred stocm dividends from the bank. One finak dividend, plus a $7.7 million adjustment to reflect the differencs between the amount at which the preferree stock sale was initially recorded and itsredemptiojn price, will reduce Firsft Niagara’s second quarter earnings by 7 cents a The company also intends to negotiate with the Treasuruy for the repurchase of a warrant for 953,009 First Niagara common shares issuedd under the program.
That repurchase is not expected to have an impacton earnings. Meanwhile, BHLB), the Pittsfield-based parent of , said the Treasuruy Department has approved its application to repatyits $40 million of preferred Repayment is expected to be completee by the end of May, from the company’s existingy liquid assets. Berkshire also expects to enter into negotiationas with the government for the repurchase of the associatedf warrant forcommon shares.