Thursday, December 23, 2010

Susquehanna Bancshares (NASDAQ:SUSQ) Pays TARP Off

Susquehanna Bancshares (NASDAQ:SUSQ) has paid the $100 million remaining they had borrowed from TARP, and were able to do it without having to raise additional capital.

Keefe, Bruyette & Woods said, "Susquehanna announced that it has repaid the remaining $100 million of its TARP funds with the related warrants expected to be repurchased in 1Q11. We view the news as expected but an incremental positive since Susquehanna was able to gain approval without having to raise additional capital. It also sends a regulatory vote of confidence in Susquehanna's credit and capital outlook with Tier 1 common of 9.5% currently."

Keefe, Bruyette & Woods maintains a "Market Perform" rating on Susquehanna Bancshares, which was trading at $9.95, down $0.16, or 1.56 percent, as of 12:23 PM EST, KBW has a price target of $9 on them.

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