Northern Trust Corporation repurchased for USD87 million the warrant issued to the U.S. Treasury to purchase approximately 3.8 million shares of common stock as part of the TARP Capital Purchase Program.
In June, Northern Trust repurchased the 1.576 million shares of its preferred stock which had been issued to the U.S. Treasury as part of the program.
With the repurchase of this warrant, Northern Trust will have paid to the U.S. Treasury an aggregate of more than USD1.709 billion, which includes the repurchase of the preferred stock and the warrant together with all dividends paid on the preferred stock. In aggregate, the Northern Trust payments represent a 14 percent annualized return on investment to the U.S. Treasury and taxpayers.
“We are pleased to have completed repurchase of the warrant, which is the final component of our participation in the Capital Purchase Program,” says Frederick H. Waddell, president and chief executive officer, Northern Trust. “Although Northern Trust consistently has been a healthy bank, we participated in the Capital Purchase Program to support an important element of the government’s effort to stabilize the nation’s financial system at a critical time. We are grateful for the role taxpayers have played in the response to last year’s crisis and are gratified that our participation has provided an attractive return on taxpayers’ investment.”
L.D.