UNITED STATES DEPARTMENT OF THE TREASURY

OFFICE OF FINANCIAL STABILITY

Warrant Disposition Report

Troubled Asset Relief Program

Office of Financial Stability

Update June 30, 2011

WARRANT DISPOSITION REPORT - UPDATE JUNE 30, 2011 1Executive Summary 

The United States Department of the Treasury (Treasury) is pleased to present this supplement to the 

Warrant Disposition Report dated December 31, 2010 with information about the 15 warrant repurchases and 5 

warrant auctions that Treasury’s Office of Financial Stability (OFS) conducted under the Troubled Asset Relief 

Program (TARP) in the six months ending June 30, 2011.1

Executive Summary 

The Emergency Economic Stabilization Act of 2008 (EESA) requires that in most circumstances Treasury receive 

warrants in connection with the purchase of troubled assets. 

Major parts of TARP were the Capital Purchase Program (CPP) and the Targeted Investment Program (TIP). 

Under these programs, Treasury invested $245 billion in 707 financial institutions.

Treasury’s warrant sales provide additional returns beyond dividend payments from Treasury’s preferred stock 

investments. Treasury’s successful warrant dispositions have significantly benefited taxpayers. During the six 

months ending June 30, 2011, Treasury received more than $886 million in gross proceeds from the disposition 

of 20 warrant positions through repurchases and auctions.2 

Since the program’s inception, Treasury has received more than $9 billion in gross proceeds from the disposition 

of warrants associated with 78 CPP investments and 2 TIP investments,3 consisting of (i) $3.7 billion from 

issuer repurchases at agreed upon fair market values and (ii) $5.4 billion from auctions. For the 78 fully repaid 

CPP investments representing $213.2 billion in capital, Treasury has received an absolute return of 8.50% from 

dividends and capital appreciation on Citigroup common stock and an added 4.34% return from the sale of 

the warrants for a total absolute return of 12.85%. For the $40 billion TIP investment in Bank of America 

Corporation and Citigroup, Treasury received an absolute return of 3.62% from dividends and an added 6.4% 

return from the sale of the warrants for a total absolute return of 10.0%.4 

Repurchases

Upon repaying its TARP preferred stock investment, a financial institution may repurchase its warrants at an 

agreed upon fair market value. In all cases, Treasury follows a consistent evaluation process to ensure that taxpayers receive fair market values for the warrants. In the six months ending June 30, 2011, Treasury received $521.7 

million from 15 banks through warrant repurchases at agreed upon fair market values.

Auctions

If an institution decides not to repurchase its warrants, Treasury has determined to dispose of the warrants as soon as 

practicable. Treasury has been successful in effectively disposing of warrants at fair market values through public auctions. 

In the 21 warrant auctions held to date, investor demand above Treasury’s minimum price has exceeded the supply of 

warrant shares by an average of 5.5 times with oversubscription rates ranging from 2.0 to 18.3 times. Auctioned warrants 

are actively traded on national exchanges, providing a liquid secondary market and observable market pricing for longdated warrants. In the six months ending June 30, 2011, Treasury auctioned 5 warrant positions, generating over $365.2 

million in proceeds.

1) TARP’s Warrant Disposition Report is posted on the OFS website at the following link: www.treasury.gov/initiatives/financial-stability/briefing-room/

 reports/other/Pages/default.aspx 

2) These numbers exclude repurchases of preferred shares acquired by Treasury pursuant to the exercise of warrants issued by private institutions, which 

warrants are exercised by Treasury at the time of purchase. In the six months ending June 30, 2011, 5 private banks repurchased their warrant 

preferred shares. Since the program inception, 25 private banks have repurchased their warrant preferred shares. See table on page 15. 

3) For the purposes of this report, warrants in Citigroup acquired in connection with the Asset Guarantee Program are incorporated with the Citigroup 

TIP warrants.

4) Returns are not annualized.
2 WARRANT DISPOSITION REPORT - UPDATE JUNE 30, 2011 Executive Summary 

Remaining Positions

As of June 30, 2011, Treasury held warrants to purchase common stock in 19 financial institutions that have 

fully repaid their CPP investments and in 171 publicly traded companies in which the CPP investment is still 

outstanding. Treasury intends to continue to execute a consistent and transparent disposition process which 

achieves fair market values and protects taxpayer interests. 

The table below sets forth proceeds from 15 warrant repurchases and 5 warrant auctions completed during the 

six months ending June 30, 2011. 

Summary of Gross Proceeds from Sale of Public Warrants since December 31, 2010

Institution Name Ticker Preferred 

Redemption Date

Preferred Amount 

Redeemed

($thousands)

Warrant 

Repurchase/ 

Auction Date

Gross Warrant 

Proceeds

($thousands)

QEO? - 

(i.e. warrants 

cut by 50%)

REPURCHASES

Fifth Third Bancorp FITB 2/2/11 $3,408,000 3/16/11 $280,026 - 

First Horizon National Corporation FHN 12/22/10 866,540 3/9/11 79,700 - 

KeyCorp KEY 3/30/11 2,500,000 4/20/11 70,000 - 

Huntington Bancshares Incorporated HBAN 12/22/10 1,398,071 1/19/11 49,100 - 

East West Bancorp, Inc. EWBC 12/29/10 306,546 1/26/11 14,500 Yes 

Whitney Holding Company / Hancock HBHC 6/3/11 300,000 6/3/11 6,900 - 

Susquehanna Bancshares, Inc. SUSQ 12/22/10 300,000 1/19/11 5,269 - 

Sandy Spring Bancorp, Inc. SASR 12/15/10 83,094 2/23/11 4,450 - 

1st Source Corporation SRCE 12/29/10 111,000 3/9/11 3,750 - 

Financial Institutions, Inc. FISI 3/30/11 37,515 5/11/11 2,080 

Washington Banking Company WBCO 1/12/11 26,380 3/2/11 1,625 Yes 

Bridge Capital Holdings BBNK 3/16/11 23,864 4/20/11 1,395 - 

First PacTrust Bancorp, Inc. FPTB 12/15/10 19,300 1/5/11 1,003 - 

National Penn Bancshares, Inc. NPBC 3/16/11 150,000 4/13/11 1,000 Yes 

Sterling Bancorp STL 4/27/11 42,000 5/18/11 946 - 

TOTAL 15 $9,572,310 $521,744 3

AUCTIONS

Citigroup, Inc. (TIP/AGP) C 12/23/09 $20,000,000 1/25/11 $257,583 - 

Citigroup, Inc. (CPP) C 12/6/10 25,000,000 1/25/11 54,622 - 

Wintrust Financial Corporation WTFC 12/22/10 250,000 2/8/11 25,964 - 

Webster Financial Corporation WBS 12/29/10 400,000 6/2/11 20,678 - 

Boston Private Financial Holdings, Inc. BPFH 6/16/10 154,000 2/1/11 6,353 - 

TOTAL 5 $45,804,000 $365,200 0
WARRANT DISPOSITION REPORT - UPDATE JUNE 30, 2011 3Background 

Background 

As required by EESA, Treasury received warrants from TARP banks to provide taxpayers with an additional 

potential return on the government’s investment.5 

For each CPP and TIP investment in a publicly traded company, Treasury received warrants to purchase, at a fixed exercise 

price, shares of common stock equal to 15 percent of the aggregate liquidation preference of the senior preferred investment.6

 The per share exercise price was set at the 20-trading day trailing average of the bank’s common stock price as of 

the time it was given preliminary approval for the TARP investment. The warrants may be exercised at any time over a ten 

year period. These public warrants include certain customary anti-dilution provisions for Treasury’s protection. 

For CPP investments in a privately-held company, an S-corporation, or certain mutual institutions, Treasury 

received warrants to purchase, at a nominal cost, additional preferred stock (warrant preferreds) or subordinated 

debentures (warrant sub debt) equivalent to five percent of the aggregate liquidation preference of the primary 

CPP investment. These warrant preferreds and warrant sub debt securities pay a higher dividend or interest rate 

than the primary CPP investment. Treasury exercised these kinds of warrants at the closings of the investments.

Institutions may repay Treasury for its CPP investment under the conditions established in the CPP purchase 

agreements as amended by the American Recovery and Reinvestment Act of 2009 (ARRA). The repayment 

price is equal to what Treasury invested, plus any unpaid dividends or interest. Originally, the CPP contracts 

provided that an institution could not redeem the investment within the first three years except with the proceeds 

of a “qualified equity offering” (QEO), which is an offering of securities that would qualify as Tier 1 capital. The 

repayment terms of the contracts were later effectively amended by the ARRA, which provides that an institution 

can repay from any source of funds and without regard to any waiting period. For TIP investments, an institution was required to first redeem its CPP investment before being able to redeem the TIP preferred stock.7

 

In addition, in order to encourage institutions to seek additional private capital, the CPP contracts provided that 

participants could halve the number of shares subject to their warrants by completing one or more QEOs before 

December 31, 2009 with aggregate gross proceeds equivalent to the value of Treasury’s CPP investment. Thirtyeight CPP participants completed a QEO in time to reduce their warrants. 

The CPP and TIP contracts further provide that once the preferred investment is redeemed or sold by Treasury, 

the institution has a right to repurchase its warrants at the fair market value. In addition, Treasury has the 

contractual right to sell the warrants. 

The ARRA affected Treasury’s authority to dispose of warrants, as it provided that when an institution repaid, 

“the Secretary shall liquidate warrants [of such institution]... at the current market price.” The ARRA was 

subsequently amended in May 2009 through the Helping Families Save Their Homes Act of 2009 (HFSTHA), 

which provides that the Secretary “may liquidate the warrants” following repayment. 

5) EESA provides that the Secretary may establish a “de minimis” exception to the requirement to issue warrants in the case of an institution that receives 

less than $100 million in TARP funds. Treasury has exercised that authority by not requiring warrants in the case of investments in Community 

Development Financial Institutions in order to encourage their participation in CPP.

6) Treasury received warrants in Citigroup to purchase, at a fixed exercise price, shares of common stock equal to 10 percent of the aggregate liquidation 

preference of the senior preferred stock received by Treasury in connection with Citigroup’s participation in the Asset Guarantee Program. 

7) Bank of America redeemed both its CPP and TIP on December 9, 2009. With regards to Citigroup, i) on December 23, 2009, Citigroup 

redeemed the trust preferred securities that Treasury had received in exchange for the original TIP preferred stock in Citigroup, ii) on 

September 30, 2010, Treasury sold its remaining trust preferred securities in Citigroup that Treasury had received in exchange for the original 

AGP preferred stock, and iii) on December 6, 2010, Treasury completed the sale of the common stock that it had received in exchange for its 

CPP investment in the Citigroup. 
4 WARRANT DISPOSITION REPORT - UPDATE JUNE 30, 2011 Warrant Disposition Process

Warrant Disposition Process

Upon redemption of the preferred stock issued to Treasury, an institution has a contractual right to repurchase 

its warrants at the fair market value.8 The banks have 15 days from repayment of the preferred to submit a bid, 

and Treasury then has 10 days to respond. In June 2009, Treasury announced that, in the event that an issuer 

does not repurchase its warrants, Treasury would sell the warrants to third parties “as quickly as practicable” 

and, when possible, by public auction. 

Issuer Repurchases

If a company wishes to repurchase its warrants, the issuer and Treasury must agree on the warrants’ fair market value. Accordingly, Treasury has established a methodology for evaluating a bank’s determination of fair 

market value. As described below, Treasury’s evaluation of an issuer’s bid is based on three categories of input: 

(i) market quotes, (ii) independent, third party valuations, and (iii) model valuations.

If the issuer and Treasury fail to agree on a price, an appraisal procedure may be invoked by either party within 

30 days following Treasury’s response to the issuer’s first bid. In the appraisal process, each party selects an 

independent appraiser. These independent appraisers conduct their own valuations and attempt to agree upon 

the fair market value. If they agree on a fair market value, that valuation becomes the basis for repurchase. If 

these appraisers fail to agree, a third appraiser is hired, and subject to some limitations, a composite valuation 

of the three appraisals is used to establish the fair market value. To date, no institution has invoked the appraisal procedure. 

Even if an agreement is not reached within the specified timeframe, a bank that has repaid its preferred stock 

may bid to repurchase its warrants at any time, and Treasury will determine whether to accept the bid. 

Sale to Third Party

Treasury retains the right to sell the warrants to a third party at a mutually agreed upon price. Following 

repayment of the preferred stock, if a bank notifies Treasury that it does not intend to repurchase its warrants 

or cannot agree with Treasury on the fair market value, Treasury intends to dispose of the warrants, when possible, through public auctions. 

Treasury held the first warrant auctions in December 2009 and has held 21 auctions to date. These auctions 

were conducted as public modified “Dutch” auctions which were registered under the Securities Act of 1933. 

Only one bank’s warrants were sold in each auction. In this format, bidders were able to submit one or more 

independent bids at different price-quantity combinations and the warrants were sold at a uniform price that 

cleared the auction.

8) Privately-held companies, S-corporations, and certain mutual institutions typically redeem their warrant preferreds or subordinated debentures at par when redeeming the primary CPP investment. (See Appendix I for table of warrant preferred repurchases as of June 30, 2011.)
WARRANT DISPOSITION REPORT - UPDATE JUNE 30, 2011 5Treasury’s Evaluation of Issuer’s Bid

Treasury’s Evaluation of Issuer’s Bid

Treasury adheres to a consistent process for evaluating bids from institutions to repurchase their warrants. Upon 

receiving a bid for a warrant repurchase, Treasury utilizes (i) market quotes, (ii) independent, third party valuations, and (iii) model valuations to assess the bid. 

(i) Market Quotes

There is little comparable market data for long-dated options. In order to perform its valuation analysis, Treasury 

seeks indications of value from various market participants active in the options markets. The range of estimated 

valuations is included in Treasury’s analysis along with the average of the market indications collected. Treasury 

also utilizes the market information from the trading of auctioned TARP warrants as another indication how of 

the market values long-dated warrants.

(ii) Third Party Valuations

Treasury engages outside consultants or external asset managers to provide independent, third party valuations 

for the warrants. The third party provides Treasury with an estimated valuation along with a range of potential 

values given a reasonable variance in the assumptions underlying their models. 

(iii) Model Valuations

Treasury uses a number of financial models to estimate warrant valuations. Primarily, Treasury uses a binomial 

option model adjusted for American style options, which is a well-accepted method for valuing options by both 

academics and market participants. Valuation estimates generated from the binomial model are presented in the 

Treasury’s analysis along with a range of potential values given a reasonable variance in key model inputs, such as 

assumptions about the expected future volatility and dividend yield of the underlying stock. Treasury’s internal 

valuation modeling was reviewed by Dr. Robert Jarrow, an options expert and professor at Cornell University, 

who concluded that “the Treasury’s modeling methodology for valuing the warrants is consistent with industry 

best practice and the highest academic standards.” More information on Treasury’s internal valuation modeling 

and the report written by Dr. Jarrow can be found at: 

www.FinancialStability.gov/roadtostability/CapitalPurchaseProgram.html. 

Treasury and its external asset managers use the 20-trading day trailing average stock price of a company in their valuations to minimize the effects of day-to-day market fluctuations. Market participants who provide Treasury with market 

indications utilize the stock price at the time that they provide the valuation. If the discussions with an institution 

continue over an extended period of time, Treasury and its external asset managers will update their estimates as necessary. Treasury may also collect new market quotes or adjust the market quotes based on changes in market conditions 

from when the quotes were collected. (See Appendix I for information on the timing of issuers’ bids.)

Determination by Warrant Committee

Based on the range of estimated warrant values provided by these sources, a committee of Treasury officials within 

the Office of Financial Stability (OFS), who comprise the OFS Warrant Committee, makes a recommendation to 

the Assistant Secretary for Financial Stability as to whether to agree with the bank’s determination of fair market 

value. Each member of the Warrant Committee and the Assistant Secretary weigh the three valuation metrics as 

they deem appropriate. 
6 WARRANT DISPOSITION REPORT - UPDATE JUNE 30, 2011 Treasury’s Evaluation of Issuer’s Bid

Additional factors presented to the Warrant Committee, along with the three valuation metrics discussed 

above include: 

• how quickly Treasury would have to monetize the warrants if the issuer does not repurchase based on 

legislation in place at the time as discussed in the “Background” section of this report,

• the expertise and experience of the outside consultant providing the third party valuation,

• the quality and number of market indications received, 

• any significant movements in the stock price of the issuer since market indications were collected, 

• deviations of the current stock price from the 20-trading day trailing average of the company’s stock price,

• the size of the warrant position and potential investor interest in the warrants, 

• the liquidity of the underlying common stock, and

• fixed transaction costs associated with selling the warrants to a third party.
WARRANT DISPOSITION REPORT - UPDATE JUNE 30, 2011 7Repurchases of Warrants

Repurchases of Warrants

Treasury began selling warrants back to banks that had repaid the TARP investment in May 2009. In aggregate, as of June 30, 2011, Treasury has realized $3.7 billion in gross proceeds from 59 warrant repurchases. 

This compares favorably to initial bids of $2.4 billion and estimates of aggregate value of $2.9 billion based on 

market indications, $3.5 billion based on third party estimates, and $3.3 billion based on Treasury’s internal 

financial model. Warrants repurchased by the issuer have yielded an extra absolute return of 7.2% on Treasury’s 

investment. 

When selling warrants back to the issuer, Treasury has achieved fair market values and protected the taxpayer. 

Dr. Jarrow noted that “[Treasury’s] valuation process results in a warrant valuation that is fair to both the participating banks and the U.S. taxpayers.” Further, the Special Inspector General for the Troubled Asset Relief 

Program (SIGTARP) audit released on May 15, 2010 entitled Assessing Treasury’s Process to Sell Warrants 

Received from TARP Recipients concluded that Treasury successfully negotiated prices from institutions that 

wished to repurchase their warrants that were at or above Treasury’s estimated range of fair market value for 

such warrants.9 The report also described the valuation methodology to estimate fair market value and offered 

no suggestions for modifying that methodology.10

9) SIGTARP report, Assessing Treasury’s Process to Sell Warrants Received from TARP Recipients, dated May 15, 2010.

10) SIGTARP offered some suggestions regarding documentation of the negotiation process, and regarding insuring consistency in the information provided to issuers seeking to repurchase their warrants. Treasury reviewed these suggestions carefully and has made appropriate 

changes to its procedures for recording Warrant Committee meeting minutes and conversations with banks regarding the repurchases of 

their warrants. 
8 WARRANT DISPOSITION REPORT - UPDATE JUNE 30, 2011 Auctions of Warrants

Auctions of Warrants

Following repayment of its preferred stock, if a bank notifies Treasury that it does not intend to repurchase its 

warrants or cannot agree with Treasury on the fair market price, Treasury disposes of the warrants, when possible, 

through public auctions. Since December 2009, Treasury has auctioned 21 warrant positions in 19 financial 

institutions, generating aggregate proceeds of approximately $5.4 billion.11 Demand in the warrant auctions has 

exceeded the number of warrant shares being auctioned by an average of 5.5 times with an oversubscription range 

of 2.0 to 18.3 times. Warrants sold through auctions have yielded an extra absolute return of 3.4% on Treasury’s 

investment. 

The auctions have also provided valuable insights into how the market values long-dated warrants, as scores of 

different bidders have placed hundreds of unique bids in each auction. The auctions have resulted in estimated 

placements of approximately 46% to fundamental institutional investors, 25% to convertible-focused investors, 

19% to derivative-focused investors, and 10% to individual investors.12 Typically, many of the fundamental 

institutional investors who buy warrants in any given auction are also holders of the bank’s common stock.

Active secondary trading in the warrants has further validated the auction prices and provides ongoing observable 

market prices for long-dated warrants. Each of the warrants sold through public auction has been listed on the 

New York Stock Exchange or the NASDAQ. Trading volumes tend to be very high during the first few days 

following an auction and then to fall into a lower range. Excluding the first five trading days after each auction, 

the daily trading volume of the warrants has averaged 0.43% of the outstanding securities. Across the 21 TARP 

warrant positions currently outstanding with public investors, four million warrants change hands on a typical 

trading day. 

In a Treasury report entitled Treasury Analysis of Warrant Auction Results, the OFS and the Office of Economic 

Policy also examined three CPP warrant auctions and one TIP warrant auction, each of which generated proceeds 

in excess of $100 million.13 This report concluded that no single bidder had a large impact on the final clearing 

price in these four auctions. Further, the report showed that increasing the amount of smaller bidders participating in the auctions would not have had a material impact on the final clearing price. These two results suggest 

that the auctions were robust and achieved a fair market price. 

Treasury has successfully disposed of warrants through the auction process. Clearing prices have been set through 

robust competition between a large number of bidders, and fair market value has been achieved for taxpayers. 

Additionally, an active and liquid secondary market for the warrants has been established, providing greater 

confidence in the market value of the total Treasury warrant portfolio and thereby supporting future auctions. 

 

11) Treasury held two separate auctions for different Bank of America Corporation CPP and TIP warrants. See footnote 5.

 12) The estimated placements to different investor types are calculated excluding any allocations to the issuing institution. 

13) The report Treasury Analysis of Warrant Auction Results can be found on the Treasury website: 

http://www.ustreas.gov/offices/economic-policy/reports/Auction-Analysis-3-18-2010.pdf 
WARRANT DISPOSITION REPORT - UPDATE JUNE 30, 2011 9Modified “Dutch” Auctions

Modified “Dutch” Auctions For the warrant auctions completed 

to date, Treasury utilized modified 

“Dutch” auctions to dispose of the 

warrants. The public auctions were 

registered under the Securities Act of 

1933. Only one bank’s warrants were 

sold in each auction. With advice 

from its external asset managers and 

the auction agent, Treasury publicly 

disclosed a minimum bid and 

privately set a reserve price for each 

auction. Bidders were able to submit 

one or more independent bids at 

different price-quantity combinations 

at or above the set minimum price. 

The auction agent did not provide 

bidders with any information about 

the bids of other bidders or auction 

trends, or with advice regarding 

bidding strategies, in connection 

with the auction. The issuers of the 

warrants were able to bid for their 

warrants in the auctions. Bids were 

accepted by the auction agent from 

8:00 a.m. to 6:30 p.m. on the day of 

the auction. The warrants were sold 

to all winning bids at the uniform 

price that cleared the auction. 

Deutsche Bank Securities Inc. was 

Treasury’s auction agent for the first 

sixteen auctions. Deutsche Bank 

received fees equal to approximately 

1.3% of the gross proceeds ($71.5 

million) which is significantly below 

typical secondary equity offering 

fees that run around 3.5% to 4.5% 

depending on the size of the offering. 

For illustrative purposes only, Figures 

1 and 2 are example charts of the 

demand in a theoretical auction of an 

8 million share position with a minimum price of $3.00 per share and a 

clearing price of $5.75 per share.

MODIFIED “DUTCH” AUCTIONS

Figure 1: Illustrative Cumulative Auction 

Demand by Price 

Figure 2: Illustrative Auction Demand by Price

0	
  

5	
  

10	
  

15	
  

20	
  

25	
  

30	
  

$3.00	
   $3.25	
   $3.50	
   $3.75	
   $4.00	
   $4.25	
   $4.50	
   $4.75	
   $5.00	
   $5.25	
   $5.50	
   $5.75	
   $6.00	
   $6.25	
   $6.50	
   $6.75	
   $7.00	
   $7.25	
   $7.50	
   $7.75	
   $8.00	
  

Example	
  of	
  Cumula-ve	
  Demand	
  by	
  Price	
  

Example	
  Auc7on	
  Clearing	
  Price	
  $5.75	
  	
  
10 WARRANT DISPOSITION REPORT - UPDATE JUNE 30, 2011 Appendix I – Detailed Tables of Warrant Repurchases and Auctions 

Appendix I – Detailed Tables of Warrant Repurchases and Auctions Issuer Bids and Warrant Sales Ordered by Sale Date

Note: The first bid date is the date that an issuer submitted its bid. Subsequent bid dates are the dates the Warrant Committee met to consider those bids. 

Company Ticker CPP Preferred 

($thousands)

Redemption 

Date

Bid #1 Bid #2 Bid #3 Bid #4 Bid # 5 Final Price

($thousands)

Bid #1 Bid #2 Bid #3 Bid #4 Bid #5 Warrant 

Repurchase Date

Old National Bancorp ONB $100,000 3/31/09 $559 $1,200 $1,200 4/15/09 5/6/09 5/8/09IBERIABANK Corporation IBKC 90,000 3/31/09 620 1,200 1,200 4/14/09 5/12/09 5/20/09Sun Bancorp SNBC 89,310 4/8/09 1,049 2,100 2,100 4/21/09 5/19/09 5/27/09FirstMerit Corp FMER 125,000 4/22/09 3,186 5,025 5,025 5/15/09 5/21/09 5/27/09Independent Bank Corp INDB 78,158 4/22/09 880 2,200 2,200 5/2/09 5/21/09 5/27/09Alliance Financial Corporation ALNC 26,918 5/13/09 320 900 900 5/26/09 6/12/09 6/17/09SCBT Financial Corporation SCBT 64,779 5/20/09 694 1,400 1,400 6/3/09 6/16/09 6/24/09Berkshire Hills Bancorp BHLB 40,000 5/27/09 875 1,040 1,040 6/8/09 6/17/09 6/24/09Somerset Hills Bancorp SOMH 7,414 5/20/09 193 275 275 6/4/09 6/17/09 6/24/09First Niagra Financial Group FNFG 184,011 5/27/09 1,500 2,700 2,700 6/4/09 6/19/09 6/24/09HF Financial Corp. HFFC 25,000 6/3/09 465 600 650 650 6/9/09 6/29/09 6/29/09 6/30/09State Street Corporation STT 2,000,000 6/17/09 60,000 60,000 6/22/09 7/8/09U.S. Bancorp USB 6,599,000 6/17/09 115,000 131,000 139,000 139,000 6/18/09 7/1/09 7/8/09 7/15/09BB&T Corporation BBT 3,133,640 6/17/09 20,854 41,707 64,925 67,010 67,010 6/24/09 7/8/09 7/14/09 7/14/09 7/22/09Goldman Sachs Group, Inc. GS 10,000,000 6/17/09 600,000 900,000 1,100,000 1,100,000 6/17/09 7/20/09 7/21/09 7/22/09American Express Company AXP 3,388,890 6/17/09 230,000 260,000 340,000 340,000 7/1/09 7/20/09 7/27/09 7/29/09Bank of New York Mellon BK 3,000,000 6/17/09 79,000 118,000 130,000 136,000 136,000 6/30/09 7/29/09 7/30/09 7/31/09 8/5/09Morgan Stanley MS 10,000,000 6/17/09 500,000 800,000 900,000 950,000 950,000 6/30/09 8/3/09 8/4/09 8/5/09 8/12/09Northern Trust Corporation NTRS 1,576,000 6/17/09 37,000 75,000 87,000 87,000 6/18/09 8/17/09 8/19/09 8/26/09Old Line Bancshares OLBK 7,000 7/15/09 175 205 225 225 7/29/09 8/19/09 8/20/09 9/2/09Bancorp Rhode Island, Inc. BARI 30,000 8/5/09 857 1,125 1,400 1,400 8/19/09 9/16/09 9/21/09 9/30/09Manhattan Bancorp MNHN 1,700 9/16/09 63 63 9/29/09 10/14/09CenterState Banks, Inc. CSFL 27,875 9/30/09 168 212 212 10/9/09 10/20/09 10/28/09CVB Financial Corp. CVBF 130,000 9/2/09 1,002 1,307 1,307 9/17/09 10/21/09 10/28/09Bank of the Ozarks, Inc. OZRK 75,000 11/4/09 2,161 2,650 2,650 11/5/09 11/18/09 11/24/09Wainwright Bank and Trust WAIN 22,000 11/24/09 569 569 12/3/09 12/16/09LSB Corporation LSBX 15,000 11/18/09 500 560 560 12/4/09 12/8/09 12/16/09Wesbanco, Inc. WSBC 75,000 9/2/09 825 950 950 950 9/22/09 10/20/09 12/11/09 12/23/09Union Bankshares Corporation UBSH 59,000 11/18/09 400 450 450 11/24/09 12/16/09 12/23/09Flushing Financial Corporation FFIC 70,000 10/28/09 597 700 860 900 900 11/10/09 12/14/09 12/23/09 12/28/09 12/30/09Trustmark Corporation TRMK 215,000 12/3/09 8,167 9,200 9,600 10,000 10,000 12/23/09 12/28/09 12/28/09 12/29/09 12/30/09OceanFirst Financial Corp. OCFC 38,263 12/30/09 431 431 1/21/10 2/3/10Monarch Financial Holdings, Inc. MNRK 14,700 12/23/09 209 250 260 260 1/6/10 1/22/10 2/1/10 2/10/10Umpqua Holdings Corp. UMPQ 214,181 2/17/10 2,055 3,610 4,250 4,500 4,500 3/2/10 3/19/10 3/22/10 3/22/10 3/31/10City National Corporation CYN 400,000 3/3/10 11,900 17,500 18,500 18,500 3/17/10 4/5/10 4/6/10 4/7/10First Litchfield Financial Corporation FLFL 10,000 4/7/10 1,488 1,488 4/7/10 4/7/10SVB Financial Group SIVB 235,000 12/23/09 3,800 6,200 6,820 6,820 2/18/10 6/4/10 6/8/10 6/16/10Discover Financial Services DFS 1,224,558 4/21/10 165,000 180,000 172,000 172,000 4/23/10 5/4/10 6/29/10 7/7/10Bar Harbor Bankshares BHB 18,751 2/24/10 67 175 225 250 250 3/10/10 4/23/10 7/20/10 7/22/10 7/28/10Citizens & Northern Corporation CZNC 26,400 8/4/10 400 400 8/19/10 9/1/10Columbia Banking System COLB 76,898 8/11/10 3,302 3,302 8/19/10 9/1/10The Bancorp, Inc. TBBK 45,220 3/10/10 3,546 4,852 4,754 4,754 3/15/10 3/29/10 9/2/10 9/8/10Fulton Financial Corporation FULT 376,500 7/14/10 8,000 9,500 10,800 10,800 8/6/10 9/2/10 9/3/10 9/8/10Central Jersey Bancorp CJBK 11,300 11/24/10 320 320 12/1/10 12/1/10First PacTrust Bancorp Inc. FPTB 19,300 12/15/10 291 1,003 1,003 12/17/10 12/30/10 1/5/11Huntington Bancshares Incorporated HBAN 1,398,071 12/22/10 49,100 49,100 1/6/11 1/19/11Susquehanna Bancshares, Inc. SUSQ 300,000 12/29/10 4,482 5,269 5,269 12/29/10 1/12/11 1/19/11East West Bancorp, Inc. EWBC 306,546 12/29/10 12,000 14,500 14,500 1/11/11 1/21/11 1/26/11Sandy Spring Bancorp, Inc. SASR 83,094 12/15/10 3,077 3,430 3,750 4,200 4,450 4,450 12/29/10 1/21/11 2/2/11 2/11/11 2/11/11 2/23/11Washington Banking Company WBCO 26,380 1/12/11 1,370 1,575 1,625 1,575 1/28/11 2/8/11 2/16/11 3/2/111st Source Corporation SRCE 111,000 12/29/10 3,250 3,750 3,750 3,750 1/20/11 1/31/11 3/2/11 3/9/11First Horizon National Corporation FHN 866,540 12/22/10 51,948 79,700 79,700 1/26/11 3/4/11 3/9/11Fifth Third Bancorp FITB 3,408,000 2/2/11 273,919 280,026 280,026 280,026 2/16/11 3/8/11 3/14/11 3/16/11National Penn Bancshares, Inc. NPBC 150,000 3/16/11 486 765 882 1,000 1,000 3/23/11 4/5/11 4/6/11 4/8/11 4/13/11Bridge Capital Holdings BBNK 23,864 2/23/11 1,150 1,395 1,395 3/30/11 4/8/11 4/20/11KeyCorp KEY 25,000 3/30/11 63,000 70,000 70,000 4/6/11 4/18/11 4/20/11Financial Institutions, Inc. FISI 37,515 3/30/11 1,418 1,853 2,080 2,080 4/8/11 4/21/11 5/2/11 5/11/11Sterling Bancorp STL 42,000 4/27/11 946 946 5/5/11 5/18/11Whitney Holding Corporation WTNY 300,000 4/29/11 6,000 6,900 6,900 4/26/11 5/13/11 6/3/11Total 59 $51,044,776 $2,340,633 $3,662,505 

Issuer Bids Date of Issuer Bids
WARRANT DISPOSITION REPORT - UPDATE JUNE 30, 2011 11Appendix I – Detailed Tables of Warrant Repurchases and Auctions Issuer Bids and Warrant Auctions Ordered by Auction Date Issuer Bids Date of Issuer Bids Company Ticker CPP/TIP Preferred ($thousands) Redemption Date Bid #1 Bid #2 Bid #3 Bid #4 Auction Proceeds ($thousands) Bid #1 Bid #2 Bid #3 Bid #4 Auction Date Capital One Financial Corp. COF $3,555,199 6/17/09 $46,500 $148,731 6/30/09 12/3/09 JPMorgan Chase & Co. JPM 25,000,000 6/17/09 825,539 950,318 6/17/09 12/10/09 TCF Financial Corporation TCB 361,172 4/22/09 3,200 9,600 5/5/09 12/15/09 Bank of America Corporation (CPP) BAC 25,000,000 12/9/09 N/A 310,572 N/A 3/3/10 Bank of America Corporation (TIP) BAC 20,000,000 12/9/09 N/A 1,255,639 N/A 3/3/10 Washington Federal, Inc. WFSL 200,000 5/27/09 N/A 15,623 N/A 3/9/10 Signature Bank SBNY 120,000 3/31/09 N/A 11,321 N/A 3/10/10 Texas Capital Bancshares TCBI 75,000 5/13/09 N/A 6,709 N/A 3/11/10 PNC Financial Services Group, Inc. PNC 7,579,200 2/10/10 N/A 324,196 N/A 4/29/10 Comerica Incorporated CMA 2,250,000 3/17/10 N/A 183,673 N/A 5/6/10 Valley National Bancorp VLY 300,000 12/23/09 2,291 5,572 1/7/10 5/18/10 Wells Fargo & Company WFC 25,000,000 12/23/09 593,600 700,000 750,000 849,015 1/7/10 2/12/10 2/22/10 5/20/10 First Financial Bancorp FFBC 80,000 2/24/10 N/A 3,116 N/A 6/2/10 Sterling Bancshares, Inc. SBIB 125,198 5/5/09 4,000 3,008 6/5/09 6/9/10 Lincoln National Corporation LNC 950,000 6/30/10 N/A 216,621 N/A 9/16/10 Hartford Financial Services Group, Inc. HIG 3,400,000 3/31/10 N/A 713,687 N/A 9/21/10 Citigroup, Inc. (TIP) C 20,000,000 12/23/09 N/A 257,583 N/A 1/25/11 Citigroup, Inc. (CPP) C 25,000,000 12/6/10 N/A 54,622 N/A 1/25/11

Boston Private Financial Holdings, Inc. BPFH 154,000 6/16/10 4,300 6,353 7/12/10 2/1/11Wintrust Financial Corporation WTFC 250,000 12/22/10 N/A 25,964 N/A 2/8/11Webster Financial Corporation WBS 400,000 12/29/10 N/A 20,678 N/A 6/2/11Total 21 $159,799,769 N/A $5,372,602 
12 WARRANT DISPOSITION REPORT - UPDATE JUNE 30, 2011 Appendix I – Detailed Tables of Warrant Repurchases and Auctions Warrant Sales Ordered By Amount of Proceeds

* Volatility implied by the repurchase price using stock price on decision date and UST estimates for dividend yield and borrow cost; reflects discounts to a modeled valuation for illiquidity, risk of cash takeout, etc.

Institution Name Ticker Decision 

Date

Payment 

Date

Expiration 

Date

Strike 

Price 

QEO? - (i.e. 

warrants 

cut by 50%)

Final Warrant 

Shares

Warrant 

Repurchase 

Price/Share

Warrant 

Repurchase 

Proceeds

Estimated

Implied

Volatility*

Stock Price 20-day Avg 

Stock Price

Warrant 

Price / Stock 

Price

Underlying / 

Strike

Goldman Sachs Group, Inc. GS 7/21/09 7/22/09 10/28/18 $122.90 - 12,205,045 $90.13 $1,100,000,000 40.6% - 44.5% $159.80 $148.16 0.56 1.30 xMorgan Stanley MS 8/5/09 8/12/09 10/28/18 22.99 - 65,245,759 14.56 950,000,000 33.3% - 38.7% 31.05 28.16 0.47 1.35 xAmerican Express Company AXP 7/27/09 7/29/09 1/9/19 20.95 - 24,264,129 14.01 340,000,000 37.6% - 40.7% 28.38 25.71 0.49 1.35 xFifth Third Bancorp FITB 3/14/11 3/16/11 12/31/18 11.72 - 43,617,747 6.42 280,025,936 30.1% - 37.4% 13.90 14.37 0.46 1.19 xDiscover Financial Services DFS 6/29/10 7/7/10 3/13/19 8.96 - 20,500,413 8.39 172,000,000 45.6% - 52.7% 13.80 13.66 0.61 1.54 xU.S. Bancorp USB 7/8/09 7/15/09 11/14/18 30.29 - 32,679,102 4.25 139,000,000 39.3% - 42.6% 16.59 17.69 0.26 0.55 xBank of New York Mellon BK 7/31/09 8/5/09 10/28/18 31.00 - 14,516,129 9.37 136,000,000 35.7% - 39.6% 27.34 27.98 0.34 0.88 xNorthern Trust Corporation NTRS 8/19/09 8/26/09 11/14/18 61.81 - 3,824,624 22.75 87,000,000 31.1% - 35.9% 60.38 60.00 0.38 0.98 xFirst Horizon National Corporation FHN 3/4/11 3/9/11 11/14/18 8.76 - 14,842,321 5.37 79,700,000 24.9% - 34.0% 11.43 11.62 0.47 1.30 xKeyCorp KEY 4/18/11 4/20/11 11/14/18 10.64 - 35,244,361 1.99 70,000,000 31.4% - 34.4% 8.59 8.80 0.23 0.81 xBB&T Corporation BBT 7/14/09 7/22/09 11/14/18 33.81 - 13,902,573 4.82 67,010,402 32.0% - 35.1% 21.65 21.64 0.22 0.64 xState Street Corporation STT 7/1/09 7/8/09 10/28/18 53.80 Yes 2,788,104 21.52 60,000,000 37.9% - 43.8% 47.35 46.98 0.45 0.88 xHuntington Bancshares Incorporated HBAN 1/13/11 1/19/11 11/14/18 8.90 - 23,562,994 2.08 49,100,000 35.1% - 38.6% 7.12 6.92 0.29 0.80 xCity National Corporation CYN 4/6/10 4/7/10 11/21/18 53.16 - 1,128,668 16.39 18,500,000 23.5% - 27.9% 55.70 53.90 0.29 1.05 xEast West Bancorp, Inc. EWBC 1/21/11 1/26/11 12/5/18 15.15 Yes 1,517,555 9.55 14,500,000 25.8% - 33.5% 20.78 20.28 0.46 1.37 xFulton Financial Corporation FULT 9/3/10 9/8/10 12/23/18 10.25 - 5,509,756 1.96 10,800,000 27.9% - 30.8% 8.72 8.52 0.22 0.85 xTrustmark Corporation TRMK 12/29/09 12/30/09 11/21/18 19.57 - 1,647,931 6.07 10,000,000 19.0% - 22.9% 22.80 20.84 0.27 1.17 xWhitney Holding Company / Hancock HBHC 5/13/11 6/3/11 12/19/18 40.91 - 1,100,000 6.27 6,900,000 30.0% - 32.6% 31.76 32.32 0.20 0.78 xSVB Financial Group SIVB 6/8/10 6/16/10 12/12/18 49.78 Yes 354,058 19.26 6,820,000 39.2% - 44.7% 42.24 45.32 0.46 0.85 xSusquehanna Bancshares, Inc. SUSQ 1/12/11 1/19/11 12/12/18 14.86 - 3,028,264 1.74 5,269,179 33.3% - 36.0% 9.18 9.47 0.19 0.62 xFirstMerit Corp FMER 5/21/09 5/27/09 1/9/19 19.69 - 952,260 5.28 5,025,000 34.9% - 38.3% 17.54 19.27 0.30 0.89 xThe Bancorp, Inc. TBBK 9/2/10 9/8/10 12/12/18 3.46 Yes 980,203 4.85 4,753,985 46.7% - 55.6% 6.89 6.60 0.70 1.99 xUmpqua Holdings Corp. UMPQ 3/22/10 3/31/10 11/14/18 14.46 Yes 1,110,897 4.05 4,500,000 25.1% - 29.4% 13.60 12.87 0.30 0.94 xSandy Spring Bancorp, Inc. SASR 2/11/11 2/23/11 12/5/18 19.13 - 651,547 6.83 4,450,000 29.8% - 34.5% 19.35 18.97 0.35 1.01 x1st Source Corporation SRCE 3/2/11 3/9/11 1/23/19 19.87 - 837,947 4.48 3,750,000 25.8% - 28.7% 9.15 9.01 0.49 0.46 xColumbia Banking System, Inc. COLB 8/25/10 9/1/10 11/21/18 14.49 Yes 398,023 8.30 3,301,647 40.3% - 46.0% 17.00 17.21 0.49 1.17 xFirst Niagara Financial Group FNFG 6/19/09 6/24/09 11/21/18 14.48 Yes 953,096 2.83 2,700,000 28.5% - 31.7% 11.93 12.05 0.24 0.82 xBank of the Ozarks, Inc. OZRK 11/18/09 11/24/09 12/12/18 29.62 - 379,811 6.98 2,650,000 20.9% - 25.1% 27.48 24.46 0.25 0.93 xIndependent Bank Corp INDB 5/21/09 5/27/09 1/9/19 24.34 - 481,664 4.57 2,200,000 28.5% - 31.6% 19.60 19.92 0.23 0.81 xSun Bancorp SNBC 5/19/09 5/27/09 1/9/19 8.27 - 1,620,545 1.30 2,100,000 16.0% - 19.9% 6.25 6.36 0.21 0.76 xFinancial Institutions, Inc. FISI 5/2/11 5/11/11 12/23/18 14.88 378,175 5.50 2,079,963 30.7% - 34.1% 16.55 16.88 0.33 1.11 xWashington Banking Company WBCO 2/16/11 3/2/11 1/16/19 8.04 Yes 246,082 6.60 1,625,000 21.8% - 30.2% 13.63 13.69 0.48 1.70 xFirst Litchfield Financial Corporation FLFL 4/7/10 4/7/10 12/12/18 7.53 - 199,203 7.47 1,488,046 N/A 14.95 14.65 0.50 1.99 xBancorp Rhode Island, Inc. BARI 9/21/09 9/30/09 12/19/18 23.32 - 192,967 7.26 1,400,000 21.9% - 26.6% 24.66 25.57 0.29 1.06 xSCBT Financial Corporation SCBT 6/16/09 6/24/09 1/16/19 32.06 - 303,083 4.62 1,400,000 24.1% - 27.4% 23.16 23.45 0.20 0.72 xBridge Capital Holdings BBNK 4/8/11 4/20/11 12/23/18 9.03 - 396,412 3.52 1,395,000 20.1% - 25.5% 9.82 9.41 0.36 1.09 xCVB Financial Corp. CVBF 10/21/09 10/28/09 12/5/18 11.68 Yes 834,761 1.57 1,307,000 26.4% - 29.2% 8.81 7.73 0.18 0.75 xIBERIABANK Corporation IBKC 5/12/09 5/20/09 12/5/18 48.74 Yes 138,490 8.66 1,200,000 17.5% - 20.8% 47.22 48.23 0.18 0.97 xOld National Bancorp ONB 5/6/09 5/8/09 12/12/18 18.45 - 813,008 1.48 1,200,000 20.3% - 23.6% 14.33 14.18 0.10 0.78 xBerkshire Hills Bancorp BHLB 6/17/09 6/24/09 12/19/18 26.51 - 226,330 4.60 1,040,000 24.0% - 28.0% 20.17 21.38 0.23 0.76 xFirst PacTrust Bancorp, Inc. FPTB 12/30/10 1/5/11 11/21/18 10.31 - 280,795 3.57 1,003,227 18.4% - 22.0% 13.01 12.60 0.27 1.26 xNational Penn Bancshares, Inc. NPBC 4/8/11 4/13/11 12/12/18 15.30 Yes 735,294 1.36 1,000,000 33.5% - 36.1% 7.96 7.73 0.17 0.52 xWesbanco, Inc. WSBC 12/11/09 12/23/09 12/5/18 25.61 - 439,282 2.16 950,000 38.1% - 40.7% 12.41 12.71 0.17 0.48 xSterling Bancorp STL 5/13/11 5/18/11 12/23/18 12.19 - 516,817 1.83 945,775 30.9% - 33.5% 9.50 10.06 0.19 0.78 xAlliance Financial Corporation ALNC 6/12/09 6/17/09 12/19/18 23.33 - 173,069 5.20 900,000 13.8% - 17.0% 26.61 25.50 0.20 1.14 xFlushing Financial Corporation FFIC 12/28/09 12/30/09 12/19/18 13.97 Yes 375,806 2.39 900,000 22.4% - 25.9% 11.73 10.92 0.20 0.84 xHF Financial Corp. HFFC 6/29/09 6/30/09 11/21/18 12.40 - 302,419 2.15 650,000 18.3% - 21.5% 11.95 12.08 0.18 0.96 xWainwright Bank and Trust WAIN 12/11/09 12/16/09 12/19/18 8.46 - 390,071 1.46 568,700 27.8% - 30.7% 7.00 6.75 0.21 0.83 xCentral Jersey Bancorp CJBK 12/1/10 12/1/10 12/23/18 6.31 - 268,621 1.19 319,659 N/A 7.49 7.45 0.16 1.19 xLSB Corporation LSBX 12/8/09 12/16/09 12/12/18 10.74 - 209,497 2.67 560,000 22.1% - 25.3% 11.28 11.00 0.24 1.05 xUnion Bankshares Corporation UBSH 12/16/09 12/23/09 12/19/18 20.94 Yes 211,318 2.13 450,000 30.3% - 33.0% 11.93 11.93 0.18 0.57 xOceanFirst Financial Corp OCFC 1/28/10 2/3/10 1/16/19 15.07 Yes 190,427 2.26 430,797 31.2% - 34.2% 10.45 10.97 0.22 0.69 xCitizens & Northern Corporation CZNC 8/25/10 9/1/10 1/16/19 20.36 - 194,794 2.05 400,000 41.9% - 44.4% 10.73 11.12 0.19 0.53 xSomerset Hills Bancorp SOMH 6/17/09 6/24/09 1/16/19 6.82 - 163,065 1.69 275,000 14.8% - 18.4% 7.80 7.73 0.22 1.14 xMonarch Financial Holdings MNRK 2/1/10 2/10/10 12/19/18 8.33 Yes 132,353 1.96 260,000 27.8% - 32.4% 6.40 6.48 0.31 0.77 xBar Harbor Bankshares BHB 7/22/10 7/28/10 1/16/19 26.81 Yes 52,455 4.77 250,000 18.2% - 20.9% 27.00 25.61 0.18 1.01 xOld Line Bancshares OLBK 8/20/09 9/2/09 12/5/18 7.40 - 141,892 1.59 225,000 26.3% - 30.1% 6.10 6.21 0.26 0.82 xCenterState Banks, Inc. CSFL 10/21/09 10/28/09 11/21/18 16.67 Yes 125,413 1.69 212,000 34.9% - 38.2% 7.47 7.64 0.23 0.45 xManhattan Bancorp MNHN 10/9/09 10/14/09 12/5/18 8.65 - 29,480 2.15 63,364 29.7% - 34.8% 6.60 6.53 0.33 0.76 xTOTAL 59 - - - - 17 - - $3,662,554,680 - - - - -

Decision Date
WARRANT DISPOSITION REPORT - UPDATE JUNE 30, 2011 13Appendix I – Detailed Tables of Warrant Repurchases and Auctions Warrant Auctions Ordered by Amount of Proceeds * Volatility implied by the repurchase price using stock price on auction date and UST estimates for dividend yield and borrow cost; reflects discounts to a modeled valuation for illiquidity, risk of cash takeout, etc. Institution Name Ticker Announce Date Auction Date Expiration Date Strike Price warrants QEO? (i.e. cut by 50%) Warrant Shares Warrant Auction Price Per Share Gross Proceeds Warrant Auction Estimated Implied Volatilty* Stock Price Stock Price 20-day Avg Warrant Price / Stock Price Underlying / Strike Bank of America Corporation (TIP) BAC 3/1/10 3/3/10 1/16/19 $13.30 - 150,375,940 $8.35 $1,255,639,099 32.1% - 36.8% $16.37 $15.59 0.51 1.23 x JPMorgan Chase & Co. JPM 12/8/09 12/10/09 10/28/18 42.42 - 88,401,697 10.75 950,318,243 23.8% - 27.5% 41.27 42.24 0.26 0.97 x Wells Fargo & Company WFC 5/18/10 5/20/10 10/28/18 34.01 - 110,262,688 7.70 849,014,998 30.6% - 34.0% 28.69 32.21 0.27 0.84 x The Hartford Financial Services Group, Inc. HIG 9/20/10 9/21/10 6/29/19 9.79 - 52,093,973 13.70 713,687,430 14.4% - 24.8% 23.16 21.68 0.59 2.37 x PNC Financial Services PNC 4/27/10 4/29/10 12/13/18 67.33 - 16,885,192 19.20 324,195,686 27.6% - 31.3% 66.06 64.68 0.29 0.98 x Bank of America Corporation (CPP) BAC 3/1/10 3/3/10 10/28/18 30.79 - 121,792,790 2.55 310,571,615 30.9% - 33.5% 16.37 15.59 0.16 0.53 x Citigroup, Inc. (TIP) C 1/24/11 1/25/11 1/4/19 10.61 - 255,033,142 1.01 257,583,473 34.8% - 37.9% 4.82 4.89 0.21 0.45 x Lincoln National Corporation LNC 9/15/10 9/16/10 7/10/19 10.92 - 13,049,451 16.60 216,620,887 29.9% - 44.7% 24.72 23.84 0.67 2.26 x Comerica Inc. CMA 5/4/10 5/6/10 11/14/18 29.40 - 11,479,592 16.00 183,673,472 28.6% - 32.3% 41.43 42.21 0.39 1.41 x Capital One Financial Corp. COF 12/1/09 12/3/09 11/14/18 42.13 - 12,657,960 11.75 148,731,030 34.6% - 38.2% 36.92 38.66 0.32 0.88 x Citigroup, Inc. (CPP) C 1/24/11 1/25/11 10/28/18 17.85 - 210,084,034 0.26 54,621,849 31.9% - 33.7% 4.82 4.89 0.05 0.27 x Wintrust Financial Corporation WTFC 2/7/11 2/8/11 12/19/18 22.82 - 1,643,295 15.80 25,964,061 21.9% - 32.0% 33.24 32.96 0.48 1.46 x Webster Financial Corporation WBS 6/1/11 6/2/11 11/21/18 18.28 - 3,282,726 6.30 20,678,339 28.2% - 32.1% 19.86 20.62 0.32 1.09 x Washington Federal, Inc WFSL 3/8/10 3/9/10 11/14/18 17.57 - 1,707,456 9.15 15,623,222 48.6% - 53.5% 19.38 19.41 0.47 1.10 x Signature Bank SBNY 3/8/10 3/10/10 12/12/18 30.21 - 595,829 19.00 11,320,751 23.1% - 29.0% 38.75 36.83 0.49 1.28 x TCF Financial Corporation TCB 12/14/09 12/15/09 11/14/18 16.93 - 3,199,988 3.00 9,599,964 28.8% - 32.1% 13.22 12.78 0.23 0.78 x Texas Capital Bancshares, Inc. TCBI 3/8/10 3/11/10 1/16/19 14.84 - 758,086 8.85 6,709,061 24.4% - 29.9% 18.41 17.06 0.48 1.24 x Boston Private Financial Holdings, Inc. BPFH 1/31/11 2/1/11 11/21/18 8.00 - 2,887,500 2.20 6,352,500 27.1% - 31.9% 6.98 6.66 0.32 0.87 x Valley National Bancorp VLY 5/17/10 5/18/10 11/14/18 17.77 - 2,532,542 2.20 5,571,592 25.1% - 27.5% 14.80 15.49 0.15 0.83 x First Financial Bancorp FFBC 6/1/10 6/2/10 12/23/10 12.90 - 465,117 6.70 3,116,283 39.9% - 43.8% 15.87 16.81 0.42 1.23 x Sterling Bancshares, Inc. SBIB 6/7/10 6/9/10 12/12/18 7.18 Yes 2,615,557 1.15 3,007,891 30.1% - 34.2% 5.00 5.41 0.23 0.70 x TOTAL 21 - - - - 1 - - $5,372,601,446 - - - - - Auction Date
14 WARRANT DISPOSITION REPORT - UPDATE JUNE 30, 2011 Appendix I – Detailed Tables of Warrant Repurchases and Auctions 1) Coverage Ratio = Gross Demand / Warrant Shares 2) Market Orders Share of Auction = Total Market Orders / Gross Demand A market order is a bid that specifies the number of warrants the bidder is willing to purchase without specifying the price it is willing to pay and is treated as a bid at the highest price received from any other bidder in the auction. 3) Daily Liquidity Turnover = Average Daily Trading Volume / Warrants Outstanding The liquidity calculation excludes the first five trading days after the auction which typically have higher than normal volume and uses data through June 30, 2010. The data source is Bloomberg. Note: Totals for Coverage Ratio, Market Orders and Daily Liquidity are weighted averages. Total for Number of Bidders is a simple average. Institution Ticker Auction Date Warrant Shares Gross Proceeds ($millions) Underwriting Fees ($millions) Minimum Bid Clearing Bid Number of Bids Number of Bidders Coverage Ratio1 Market Orders Share of Demand2 Warrants Repurchased by Bank in Auction Daily Liquidity Turnover3 Capital One Financial Corp. COF 12/3/09 12,657,960 $148.7 $2.231 $7.50 $11.75 604 174 13.3x 0.2% - 0.24% JPMorgan Chase & Co. JPM 12/10/09 88,401,697 950.3 14.255 8.00 10.75 754 381 6.5x 0.3% - 0.43% TCF Financial Corporation TCB 12/15/09 3,199,988 9.6 0.150 1.50 3.00 470 135 18.3x 1.8% - 0.76% Bank of America Corporation (TIP) BAC 3/3/10 150,375,940 1,255.6 18.835 7.00 8.35 1,489 535 4.4x 1.0% - 0.55% Bank of America Corporation (CPP) BAC 3/3/10 121,792,790 310.6 4.659 1.50 2.55 1,246 570 10.7x 1.7% - 0.68% Washington Federal, Inc WFSL 3/9/10 1,707,456 15.6 0.234 5.00 9.15 708 413 14.5x 8.3% - 0.51% Signature Bank SBNY 3/10/10 595,829 11.3 0.170 16.00 19.00 409 68 8.2x 0.7% - 0.61% Texas Capital Bancshares, Inc. TCBI 3/11/10 758,086 6.7 0.150 6.50 8.85 326 61 7.0x 0.9% - 0.32% PNC Financial Services PNC 4/29/10 16,885,192 324.2 3.918 15.00 19.20 1,450 181 5.5x 2.5% - 0.55% Comerica Inc. CMA 5/6/10 11,479,592 183.7 2.571 15.00 16.00 518 120 2.7x 1.9% - 0.32% Valley National Bancorp VLY 5/18/10 2,532,542 5.6 0.150 1.70 2.20 183 34 6.6x 1.2% - 0.28% Wells Fargo & Company WFC 5/20/10 110,261,688 849.0 8.640 6.50 7.70 859 297 3.9x 2.3% 70,165,963 0.47% First Financial Bancorp FFBC 6/2/10 465,117 3.1 0.150 4.00 6.70 142 66 10.3x 2.0% - 1.41% Sterling Bancshares, Inc. SBIB 6/9/10 2,615,557 3.0 0.150 0.85 1.15 211 67 6.9x 3.6% - 0.69% Lincoln National Corporation LNC 9/16/10 13,049,451 216.6 2.950 16.00 16.60 795 204 5.1x 2.1% 2,899,159 0.22% Hartford Financial Services Group, Inc. HIG 9/21/10 52,093,973 713.7 7.423 12.40 13.70 635 87 2.0x 4.2% - 0.22% Citigroup (TIP) C 1/25/11 255,033,142 257.6 3.318 0.60 1.01 1,557 472 5.2x 2.4% - 0.44% Citigroup (CPP) C 1/25/11 210,084,034 54.6 0.765 0.15 0.26 1,064 398 4.2x 3.4% - 0.23% Boston Private Financial Holdings, Inc. BPFH 2/1/11 2,887,500 6.4 0.150 1.40 2.20 369 89 7.9x 1.8% - 0.23% Wintrust Financial Corporation WTFC 2/8/11 1,643,295 26.0 0.363 13.50 15.80 340 64 7.0x 1.6% - 0.17% Webster Financial Corporation WBS 6/2/11 3,282,276 20.7 0.289 5.50 6.30 144 30 3.9x 1.8% 2,282,276 0.13% Total/Average 21 $5,372.6 $71.520 680 212 5.5x 2.0% 0.43%

Warrant Auction Data
WARRANT DISPOSITION REPORT - UPDATE JUNE 30, 2011 15Appendix I – Detailed Tables of Warrant Repurchases and Auctions 

Issuer Repurchases of Warrant Preferreds or Warrant Sub Debt

Institution Name Repurchase Date CPP Investment

($thousands)

Warrant Repurchase 

Date

Gross Warrant Proceeds

($thousands)

State Bankshares, Inc. 6/29/11 $50,000 6/29/11 $2,500 

Stockmens Financial Corporation 3/16/11 15,568 3/16/11 778 

Centra Financial Holdings, Inc. 3/31/09 15,000 4/15/09 750 

First Manitowoc Bancorp, Inc. 5/27/09 12,000 5/27/09 600 

First Southern Bancorp, Inc. 6/16/10 10,900 6/16/10 545 

Midland States Bancorp, Inc. 12/23/09 10,189 12/23/09 509 

1st United Bancorp, Inc. 11/18/09 10,000 11/18/09 500 

Georgia Commerce Bancshares, Inc. 2/16/11 8,700 2/16/11 435 

Hamilton State Bancshares 4/13/11 7,000 4/13/11 350 

Leader Bancorp, Inc. 11/24/10 5,830 11/24/10 292 

First ULB Corp. 4/22/09 4,900 4/22/09 245 

Capital Bancorp, Inc. 12/30/10 4,700 12/30/10 235 

Hilltop Community Bancorp, Inc. 4/21/10 4,000 4/21/10 200 

Texas National Bancorporation, Inc. 5/19/10 3,981 5/19/10 199 

California Oaks State Bank 12/8/10 3,300 12/8/10 165 

FPB Financial Corp. 6/16/10 3,240 6/16/10 162 

Frontier Bancshares, Inc. 10/6/10 3,000 10/6/10 150 

Surrey Bancorp 12/29/10 2,000 12/29/10 100 

Nationwide Bankshares, Inc. 12/29/10 2,000 12/29/10 100 

American Premier Bancorp 1/26/11 1,800 1/26/11 90 

Signature Bancshares, Inc. 12/15/10 1,700 12/15/10 85 

The First State Bank of Mobeetie 4/14/10 731 4/14/10 37 

Midwest Regional Bancorp 11/10/09 700 11/10/09 35 

Green City Bancshares, Inc. 7/14/10 651 7/14/10 33 

Haviland Bancshares, Inc. 12/29/10 425 12/29/10 21 

TOTAL 25 $182,315 $9,116 
16 WARRANT DISPOSITION REPORT - UPDATE JUNE 30, 2011 Appendix II – Warrant Disposition Details 

Appendix II – Warrant Disposition Details 

The chart below demonstrates the three elements of Treasury’s warrant valuation analysis together with an 

institution’s bid for the warrants, using Northern Trust Corporation as an example. The market quotes are 

presented as a range from the low to the high estimate of value provided by market participants (black bar) 

as well as the average of all the market indications collected (red point). The third party estimate of value 

(red point) is presented along with a reasonable range (black bar) that is also prepared by the third party. 

Treasury’s estimate of value (red point) based on its internal model is presented along with a reasonable 

range (black bar). The ranges of estimates presented below show the final estimates utilized by Treasury 

officials to analyze the bank’s final bid. 

Appendix II presents charts for all of the CPP warrant sales, in which the bank submitted a bid to 

repurchase its warrants, as of December 31, 2010. As with the example below, all of the valuation estimates 

presented in Appendix II represent the final estimates used by Treasury officials when analyzing a repurchase 

request. Appendix II also notes additional relevant factors that were presented to the Warrant Committee.

GRAPHICAL REPRESENTATION OF TREASURY’S WARRANT VALUATION ANALYSIS

Example of Treasury’s Warrant Valuation Analysis

$30,000 

$40,000 

$50,000 

$60,000 

$70,000 

$80,000 

$90,000 

$100,000 

$110,000 

$120,000 

Northern Trust (NTRS) 

Fair Market Value Estimates of Treasury's Warrant Position 

First Bid - $37,000,000 

Final Bid - $87,000,000

Second Bid - $75,000,000

Market Quotes Third Party Model Valuation 

$ Millions
WARRANT DISPOSITION REPORT - UPDATE JUNE 30, 2011 17Appendix II – Warrant Disposition Details 

Old National Bancorp (ONB)

Repurchase of ONB Warrant

On May 6, 2009, Old National Bancorp (ONB) agreed to pay $1.2 million for the warrant held by Treasury 

which entitled the holder of the warrant to purchase 813,008 shares of ONB at a strike price of $18.45 per 

share. The warrant had an expiration date of December 12, 2018. 

NOTE: 1) At the time of the decision, the external asset managers had not been hired. Treasury relied on 

financial modeling consultants to provide third party input. The modeling consultants may not have had 

market expertise necessary to make reasonable assumptions for key inputs such as volatility and dividend yield. 

2) At that time, legislation may have required that Treasury dispose of the warrants immediately. The fixed cost 

of disposing of the warrants was taken into consideration when analyzing the company’s determination of fair 

market value. 

$500

$1,000

$1,500

$2,000

$2,500

$3,000

$3,500

Old National Bancorp (ONB) 

Fair Market Value Estimates of Treasury's Warrant Position 

First Bid - $559,000

Final Bid - $1,200,000

Market Quotes Third Party Model Valuation 

$ Thousands

ONB

Valuation Estimates

for Warrant ($thousands) Low High Estimate First Bid Final Bid Details

Market Quotes $1,220 $1,490 $1,353 $559 $1,200 Three market indications 

Third Party $1,969 $3,054 $3,054 $559 $1,200 External asset manager’s valuation estimates

Model Valuation $1,056 $1,697 $1,393 $559 $1,200 Binomial option model adjusted for American style options

 
18 WARRANT DISPOSITION REPORT - UPDATE JUNE 30, 2011 Appendix II – Warrant Disposition Details 

IBERIABANK Corporation (IBKC) 

Repurchase of IBKC Warrant

On May 12, 2009, IBERIABANK Corporation (IBKC) agreed to pay $1.2 million for the warrant held by 

Treasury which entitled the holder of the warrant to purchase 138,490 shares of IBKC at a strike price of 

$48.74 per share. The warrant had an expiration date of December 5, 2018.

NOTE: 1) At the time of the decision, the external asset managers had not been hired. Treasury relied on 

financial modeling consultants to provide third party input. The modeling consultants may not have had 

market expertise necessary to make reasonable assumptions for key inputs such as volatility and dividend yield. 

2) At that time, legislation may have required that Treasury dispose of the warrants immediately. The fixed cost 

of disposing of the warrants was taken into consideration when analyzing the company’s determination of fair 

market value.

$500

$700

$900

$1,100

$1,300

$1,500

$1,700

$1,900

$2,100

$2,300

$2,500

IBERIABANK Corporation (IBKC) 

Fair Market Value Estimates of Treasury's Warrant Position 

Market Quotes Third Party Model Valuation 

Final Bid - $1,200,000

First Bid - $620,000

$ Thousands

IBKC

Valuation Estimates

for Warrant ($thousands) Low High Estimate First Bid Final Bid Details

Market Quotes $1,350 $1,662 $1,566 $620 $1,200 Four market indications 

Third Party $1,370 $2,334 $2,334 $620 $1,200 External asset manager’s valuation estimates

Model Valuation $1,156 $1,682 $1,421 $620 $1,200 Binomial option model adjusted for American style options

 
WARRANT DISPOSITION REPORT - UPDATE JUNE 30, 2011 19Appendix II – Warrant Disposition Details 

Sun Bancorp, Inc. (SNBC)

Repurchase of SNBC Warrant

On May 19, 2009, Sun Bancorp, Inc. (SNBC) agreed to pay $2.1 million for the warrant held by Treasury 

which entitled the holder of the warrant to purchase 1,620,545 shares of SNBC at a strike price of $8.27 per 

share. The warrant had an expiration date of January 9, 2019. 

$800

$1,300

$1,800

$2,300

$2,800

$3,300

$3,800

$4,300

Sun Bancorp (SNBC) 

Fair Market Value Estimates of Treasury's Warrant Position 

First Bid - $1,049,000 

Market Quotes Third Party Model Valuation 

Final Bid - $2,100,000

$ Thousands

SNBC

Valuation Estimates

for Warrant ($thousands) Low High Estimate First Bid Final Bid Details

Market Quotes $1,080 $2,778 $2,096 $1,049 $2,100 Three market indications 

Third Party $2,000 $4,028 $4,028 $1,049 $2,100 External asset manager’s valuation estimates

Model Valuation $1,974 $2,771 $2,252 $1,049 $2,100 Binomial option model adjusted for American style options

 
20 WARRANT DISPOSITION REPORT - UPDATE JUNE 30, 2011 Appendix II – Warrant Disposition Details 

FirstMerit Corp (FMER)

Repurchase of FMER Warrant

On May 21, 2009, FirstMerit Corp (FMER) agreed to pay $5.025 million for the warrant held by Treasury 

which entitled the holder of the warrant to purchase 952,260 shares of FMER at a strike price of $19.69 per 

share. The warrant had an expiration date of January 9, 2019. 

$2,000

$3,000

$4,000

$5,000

$6,000

$7,000

$8,000

FirstMerit Corp (FMER) 

Fair Market Value Estimates of Treasury's Warrant Position 

First Bid - $3,186,000 

Final Bid - $5,025,000

Market Quotes Third Party Model Valuation 

$ Thousands

FMER

Valuation Estimates

for Warrant ($thousands) Low High Estimate First Bid Final Bid Details

Market Quotes $4,082 $6,543 $4,918 $3,186 $5,025 Four market indications 

Third Party $5,428 $7,532 $6,485 $3,186 $5,025 External asset manager’s valuation estimates

Model Valuation $4,871 $5,930 $5,400 $3,186 $5,025 Binomial option model adjusted for American style options

 

NOTE: At the time of the decision, the common share price of FMER was $17.54 compared to the 20 day 

average price of $19.27. This difference was taken under consideration in Treasury’s analysis of the company’s 

determination of fair market value.
WARRANT DISPOSITION REPORT - UPDATE JUNE 30, 2011 21Appendix II – Warrant Disposition Details 

Independent Bank Corp (INDB)

Repurchase of INDB Warrant

On May 21, 2009, Independent Bank Corp (INDB) agreed to pay $2.2 million for the warrant held by 

Treasury which entitled the holder of the warrant to purchase 481,664 shares of INDB at a strike price of 

$24.34 per share. The warrant had an expiration date of January 9, 2019. 

$800

$1,300

$1,800

$2,300

$2,800

$3,300

$3,800

Independent Bank (INDB) 

Fair Market Value Estimates of Treasury's Warrant Position 

First Bid - $880,000 

Final Bid - $2,200,000

Market Quotes Third Party Model Valuation 

$ Thousands

INDB

Valuation Estimates

for Warrant ($thousands) Low High Estimate First Bid Final Bid Details

Market Quotes $1,444 $2,432 $2,104 $888 $2,200 Three market indications 

Third Party $2,293 $3,482 $2,885 $888 $2,200 External asset manager’s valuation estimates

Model Valuation $1,754 $2,965 $2,345 $888 $2,200 Binomial option model adjusted for American style options

 
22 WARRANT DISPOSITION REPORT - UPDATE JUNE 30, 2011 Appendix II – Warrant Disposition Details 

Alliance Financial Corporation (ALNC)

Repurchase of ALNC Warrant

On June 12, 2009, Alliance Financial Corporation (ALNC) agreed to pay $900,000 for the warrant held by 

Treasury which entitled the holder of the warrant to purchase 173,069 shares of ALNC at a strike price of 

$23.33 per share. The warrant had an expiration day of December 19, 2018. 

$300

$400

$500

$600

$700

$800

$900

$1,000

$1,100

$1,200

$1,300

Alliance Financial (ALNC) 

Fair Market Value Estimates of Treasury's Warrant Position 

Market Quotes Third Party Model Valuation 

Final Bid - $900,000

 First Bid - $320,000 

$ Thousands

ALNC

Valuation Estimates

for Warrant ($thousands) Low High Estimate First Bid Final Bid Details

Market Quotes $554 $952 $762 $320 $900 Three market indications 

Third Party $899 $1,244 $990 $320 $900 External asset manager’s valuation estimates

Model Valuation $741 $895 $818 $320 $900 Binomial option model adjusted for American style options

 
WARRANT DISPOSITION REPORT - UPDATE JUNE 30, 2011 23Appendix II – Warrant Disposition Details 

SCBT

Valuation Estimates

for Warrant ($thousands) Low High Estimate First Bid Final Bid Details

Market Quotes $555 $1,789 $1,159 $694 $1,400 Five market indications 

Third Party $2,322 $3,261 $2,888 $694 $1,400 External asset manager’s valuation estimates

Model Valuation $1,137 $1,436 $1,281 $694 $1,400 Binomial option model adjusted for American style options

 

SCBT Financial Corporation (SCBT) 

Repurchase of SCBT Warrant

On June 16, 2009, SCBT Financial Corporation (SCBT) agreed to pay $1.4 million for the warrant held by 

Treasury which entitled the holder of the warrant to purchase 303,083 shares of SCBT at a strike price of 

$32.06 per share. The warrant had an expiration date of January 16, 2019. 

NOTE: The third party modeled valuation assumed volatility of 46%. Treasury’s model assumed a significantly 

lower volatility closer to the historic volatility of the company and observable market prices. 

$500

$1,000

$1,500

$2,000

$2,500

$3,000

$3,500

SCBT Financial Corporation (SCBT) 

Fair Market Value Estimates of Treasury's Warrant Position 

First Bid - $694,060 

Final Bid - $1,400,000

Market Quotes Third Party Model Valuation 

$ Thousands
24 WARRANT DISPOSITION REPORT - UPDATE JUNE 30, 2011 Appendix II – Warrant Disposition Details 

Berkshire Hills Bancorp (BHLB) 

Repurchase of BHLB Warrant

On June 17, 2009, Berkshire Hills Bancorp (BHLB) agreed to pay $1.04 million for the warrant held by 

Treasury which entitled the holder of the warrant to purchase 226,330 shares of BHLB at a strike price of 

$26.51 per share. The warrant had an expiration date of December 19, 2018. 

$500

$700

$900

$1,100

$1,300

$1,500

$1,700

$1,900

$2,100

Berkshire Hills (BHLB) 

Fair Market Value Estimates of Treasury's Warrant Position 

First Bid - $875,000

Final Bid - $1,040,000

Market Quotes Third Party Model Valuation 

$ Thousands

BHLB

Valuation Estimates

for Warrant ($thousands) Low High Estimate First Bid Final Bid Details

Market Quotes $509 $758 $611 $875 $1,040 Three market indications 

Third Party $1,071 $1,974 $1,494 $875 $1,040 External asset manager’s valuation estimates

Model Valuation $827 $1,116 $971 $875 $1,040 Binomial option model adjusted for American style options

 
WARRANT DISPOSITION REPORT - UPDATE JUNE 30, 2011 25Appendix II – Warrant Disposition Details 

Somerset Hills Bancorp (SOMH) 

Repurchase of SOMH Warrant

On June 17, 2009, Somerset Hills Bancorp (SOMH) agreed to pay $275,000 for the warrant held by Treasury 

which entitled the holder of the warrant to purchase 163,065 shares of SOMH at a strike price of $6.82 per 

share. The warrant had an expiration date of January 16, 2019. 

$100

$150

$200

$250

$300

$350

$400

$450

$500

$550

$600

Somerset Hills (SOMH) 

Fair Market Value Estimates of Treasury's Warrant Position 

First Bid - $193,000 

Market Quotes Third Party Model Valuation 

Final Bid - $275,000

$ Thousands

SOMH

Valuation Estimates

for Warrant ($thousands) Low High Estimate First Bid Final Bid Details

Market Quotes $122 $406 $266 $193 $275 Five market indications 

Third Party $374 $521 $447 $193 $275 External asset manager’s valuation estimates

Model Valuation $253 $299 $276 $193 $275 Binomial option model adjusted for American style options

 
26 WARRANT DISPOSITION REPORT - UPDATE JUNE 30, 2011 Appendix II – Warrant Disposition Details 

First Niagara Financial Group (FNFG) 

Repurchase of FNFG Warrant

On June 19, 2009, First Niagara Financial Group (FNFG) agreed to pay $2.7 million for the warrant held 

by Treasury which entitled the holder of the warrant to purchase 953,096 shares of FNFG at a strike price of 

$14.48 per share. The warrant had an expiration date of November 21, 2018. 

$900

$1,400

$1,900

$2,400

$2,900

$3,400

$3,900

$4,400

$4,900

$5,400

First Niagara (FNFG) 

Fair Market Value Estimates of Treasury's Warrant Position 

First Bid - $1,500,000 

Final Bid - $2,700,000

Market Quotes Third Party Model Valuation 

$ Thousands

FNFG

Valuation Estimates

for Warrant ($thousands) Low High Estimate First Bid Final Bid Details

Market Quotes $953 $2,383 $1,646 $1,500 $2,700 Five market indications 

Third Party $3,455 $4,995 $4,221 $1,500 $2,700 External asset manager’s valuation estimates

Model Valuation $2,444 $3,175 $2,807 $1,500 $2,700 Binomial option model adjusted for American style options

 
WARRANT DISPOSITION REPORT - UPDATE JUNE 30, 2011 27Appendix II – Warrant Disposition Details 

HF Financial Corp (HFFC) 

Repurchase of HFFC Warrant

On June 29, 2009, HF Financial Corp (HFFC) agreed to pay $650,000 for the warrant held by Treasury 

which entitled the holder of the warrant to purchase 302,419 shares of HFFC at a strike price of $12.40 per 

share. The warrant had an expiration date of November 21, 2018. 

$200 

$300 

$400 

$500 

$600 

$700 

$800 

$900 

HF Financial (HFFC) 

Fair Market Value Estimates of Treasury's Warrant Position 

First Bid - $464,987 

Final Bid - $650,000 

Market Quotes Third Party Model Valuation 

Second Bid - $600,000 

$ Thousands

HFFC

Valuation Estimates

for Warrant ($thousands) Low High Estimate

First

Bid

Second 

Bid

Final

 Bid Details

Market Quotes $251 $720 $424 $464 $600 $650 Three market indications 

Third Party $686 $822 $753 $464 $600 $650 External asset manager’s valuation estimates

Model Valuation $505 $622 $563 $464 $600 $650 Binomial option model adjusted for American style 

options

 
28 WARRANT DISPOSITION REPORT - UPDATE JUNE 30, 2011 Appendix II – Warrant Disposition Details 

State Street Corporation (STT) 

Repurchase of STT Warrant

On July 1, 2009, State Street Corporation (STT) agreed to pay $60 million for the warrant held by Treasury 

which entitled the holder of the warrant to purchase 2,788,104 shares of STT at a strike price of $53.80 per 

share. The warrant had an expiration date of October 28, 2018. 

$10,000 

$20,000 

$30,000 

$40,000 

$50,000 

$60,000 

$70,000 

$80,000 

Market Quotes Third Party Model Valuation 

State Street (STT)

Fair Market Value Estimates of Treasury's Warrant Position

Final Bid - $60,000,000

$ Thousands

STT

Valuation Estimates

for Warrant ($millions) Low High Estimate Final Bid Details

Market Quotes $16 $48 $33 $60 Seven market indications 

Third Party $46 $65 $55 $60 External asset manager’s valuation estimates

Model Valuation $52 $62 $57 $60 Binomial option model adjusted for American style options
WARRANT DISPOSITION REPORT - UPDATE JUNE 30, 2011 29Appendix II – Warrant Disposition Details 

U.S. Bancorp (USB) 

Repurchase of USB Warrant

On July 8, 2009, U.S. Bancorp (USB) agreed to pay $139 million for the warrant held by Treasury which 

entitled the holder of the warrant to purchase 32,679,102 shares of USB at a strike price of $30.29 per share. 

The warrant had an expiration date of November 14, 2018. 

$11,000

$31,000

$51,000

$71,000

$91,000

$111,000

$131,000

$151,000

$171,000

$191,000

US Bancorp (USB) 

Fair Market Value Estimates of Treasury's Warrant Position 

First Bid - $115,000,000

Final Bid - $139,000,000

Second Bid - $131,000,000

Market Quotes Third Party Model Valuation 

$ Millions

USB

Valuation Estimates

for Warrant ($millions) Low High Estimate

First

Bid

Second 

Bid

Final

 Bid Details

Market Quotes $12 $175 $127 $115 $131 $139 Six market indications 

Third Party $108 $183 $144 $115 $131 $139 External asset manager’s valuation estimates

Model Valuation $117 $164 $140 $115 $131 $139 Binomial option model adjusted for American style 

options

 
30 WARRANT DISPOSITION REPORT - UPDATE JUNE 30, 2011 Appendix II – Warrant Disposition Details 

BB&T Corporation (BBT) 

Repurchase of BBT Warrant

On July 14, 2009, BB&T Corporation (BBT) agreed to pay $67 million for the warrant held by Treasury 

which entitled the holder of the warrant to purchase 13,902,573 shares of BBT at a strike price of $33.81 per 

share. The warrant had an expiration date of November 14, 2018. 

$18,000 

$28,000 

$38,000 

$48,000 

$58,000 

$68,000 

$78,000 

$88,000 

Market Quotes Third Party Model Valuation 

Final Bid - $67,010,402

Third Bid - $64,925,016

BB&T Corporation (BBT) 

Fair Market Value Estimates of Treasury's Warrant Position 

Second Bid - $41,707,719

First Bid - $20,853,860 

$ Millions

BBT

Valuation Estimates

for Warrant ($millions) Low High Estimate

First 

Bid

Second 

Bid

Third 

Bid

Final 

Bid Details

Market Quotes $23 $58 $36 $20 $41 $65 $67 Five market indications 

Third Party $43 $82 $62 $20 $41 $65 $67 External asset manager’s valuation 

estimates

Model Valuation $55 $78 $67 $20 $41 $65 $67 Binomial option model adjusted for 

American style options
WARRANT DISPOSITION REPORT - UPDATE JUNE 30, 2011 31Appendix II – Warrant Disposition Details 

Goldman Sachs Group, Inc. (GS) 

Repurchase of GS Warrant

On July 21, 2009, Goldman Sachs Group, Inc. (GS) agreed to pay $1.1 billion for the warrant held by 

Treasury which entitled the holder of the warrant to purchase 12,205,045 shares of GS at a strike price of 

$122.90 per share. The warrant had an expiration date of October 28, 2018. 

NOTE: At the time of the decision, the common share price of GS was $159.80 compared to the 20-day 

average price of $148.16. This difference was taken under consideration in Treasury’s analysis of the company’s 

determination of fair market value.

$550,000

$650,000

$750,000

$850,000

$950,000

$1,050,000

$1,150,000

Goldman Sachs (GS) 

Fair Market Value Estimates of Treasury's Warrant Position

First Bid - $600,000,000

$ Millions

!T,T##,###,###"

Second Bid - $900,000,000

Market Quotes Third Party Model Valuation 

Final Bid - $1,100,000,000

GS

Valuation Estimates

for Warrant ($millions) Low High Estimate

First

Bid

Second 

Bid

Final

 Bid Details

Market Quotes $732 $917 $826 $600 $900 $1,100 Seven market indications 

Third Party $899 $1,058 $993 $600 $900 $1,100 External asset manager’s valuation estimates

Model Valuation $808 $995 $902 $600 $900 $1,100 Binomial option model adjusted for American style 

options
32 WARRANT DISPOSITION REPORT - UPDATE JUNE 30, 2011 Appendix II – Warrant Disposition Details 

American Express Company (AXP)

Repurchase of AXP Warrant

On July 27, 2009, American Express Company (AXP) agreed to pay $340 million for the warrant held by 

Treasury which entitled the holder of the warrant to purchase 24,264,129 shares of AXP at a strike price of 

$20.95 per share. The warrant had an expiration date of January 9, 2019. 

Market Quotes Third Party Model Valuation 

American Express (AXP)

Fair Market Value Estimates of Treasury's Warrant Position

$150,000

$200,000

$250,000

$300,000

$350,000

$400,000

$450,000

Final Bid - $340,000,000

 First Bid - $230,000,000 

Second Bid - $260,000,000 

$ Millions

NOTE: At the time of the decision, the common share price of GS was $159.80 compared to the 20-day 

average price of $148.16. This difference was taken under consideration in Treasury’s analysis of the company’s 

determination of fair market value.

AXP

Valuation Estimates

for Warrant ($millions) Low High Estimate

First

Bid

Second 

Bid

Final

 Bid Details

Market Quotes $175 $298 $219 $230 $260 $340 Six market indications 

Third Party $269 $349 $309 $230 $260 $340 External asset manager’s valuation estimates

Model Valuation $248 $322 $285 $230 $260 $340 Binomial option model adjusted for American style options
WARRANT DISPOSITION REPORT - UPDATE JUNE 30, 2011 33Appendix II – Warrant Disposition Details 

Bank of New York Mellon Corporation (BK)

Repurchase of BK Warrant

On July 31, 2009, Bank of New York Mellon Corporation (BK) agreed to pay $136 million for the warrant 

held by Treasury which entitled the holder of the warrant to purchase 14,516,129 shares of BK at a strike price 

of $31.00 per share. The warrant had an expiration date of October 28, 2018. 

$45,000 

$85,000 

$105,000 

$125,000 

$145,000 

$165,000 

Market Quotes Third Party Model Valuation 

First Bid - $79,000,000

Final Bid - $136,000,000

Bank of New York Mellon (BK) 

Fair Market Value Estimates of Treasury's Warrant Position 

Third Bid - $130,000,000

$65,000 

$ Millions

Second Bid - $118,000,000

BK

Valuation Estimates

for Warrant ($millions) Low High Estimate

First 

Bid

Second 

Bid

Third 

Bid

Final 

Bid Details

Market Quotes $55 $137 $94 $79 $118 $130 $136 Seven market indications 

Third Party $108 $164 $136 $79 $118 $130 $136 External asset manager’s valuation 

estimates

Model Valuation $110 $162 $135 $79 $118 $130 $136 Binomial option model adjusted for 

American style options
34 WARRANT DISPOSITION REPORT - UPDATE JUNE 30, 2011 Appendix II – Warrant Disposition Details 

Morgan Stanley (MS)

Repurchase of MS Warrant

On August 5, 2009, Morgan Stanley (MS) agreed to pay $950 million for the warrant held by Treasury which 

entitled the holder of the warrant to purchase 65,245,759 shares of MS at a strike price of $22.99 per share. 

The warrant had an expiration date of October 28, 2018. 

NOTE: At the time of the decision, the common share price of MS was $31.05 compared to the 20-day 

average price of $28.16. This difference was taken under consideration in Treasury’s analysis of the company’s 

determination of fair market value.

$400,000 

$500,000 

$600,000 

$700,000 

$800,000 

$900,000 

$1,000,000 

$1,100,000 

Market Quotes Third Party Model Valuation 

Morgan Stanley (MS) 

Fair Market Value Estimates of Treasury's Warrant Position 

Third Bid - $900,000,000

Final Bid - $950,000,000

First Bid - $500,000,000 

Second Bid - $800,000,000

$ Millions

MS

Valuation Estimates

for Warrant ($millions) Low High Estimate

First 

Bid

Second 

Bid

Third 

Bid

Final 

Bid Details

Market Quotes $495 $944 $731 $500 $800 $900 $950 Seven market indications 

Third Party $806 $1,002 $900 $500 $800 $900 $950 External asset manager’s valuation 

estimates

Model Valuation $750 $962 $855 $500 $800 $900 $950 Binomial option model adjusted for 

American style options
WARRANT DISPOSITION REPORT - UPDATE JUNE 30, 2011 35Appendix II – Warrant Disposition Details 

Northern Trust Corporation (NTRS) 

Repurchase of NTRS Warrant

On August 19, 2009, Northern Trust Corporation (NTRS) agreed to pay $87 million for the warrant held by 

Treasury which entitled the holder of the warrant to purchase 3,824,624 shares of NTRS at a strike price of 

$61.81 per share. The warrant had an expiration date of November 14, 2018. 

$30,000 

$40,000 

$50,000 

$60,000 

$70,000 

$80,000 

$90,000 

$100,000 

$110,000 

$120,000 

Northern Trust (NTRS) 

Fair Market Value Estimates of Treasury's Warrant Position 

First Bid - $37,000,000 

Final Bid - $87,000,000

Second Bid - $75,000,000

Market Quotes Third Party Model Valuation 

$ Millions

NTRS

Valuation Estimates

for Warrant ($millions) Low High Estimate

First 

Bid

Second 

Bid

Final 

Bid Details

Market Quotes $54 $80 $69 $37 $75 $87 Six market indications 

Third Party $71 $101 $86 $37 $75 $87 External asset manager’s valuation estimates

Model Valuation $72 $97 $84 $37 $75 $87 Binomial option model adjusted for American style options
36 WARRANT DISPOSITION REPORT - UPDATE JUNE 30, 2011 Appendix II – Warrant Disposition Details 

Old Line Bancshares, Inc. (OLBK)

Repurchase of OLBK Warrant

On August 20, 2009, Old Line Bancshares, Inc. (OLBK) agreed to pay $225,000 for the warrants held by 

Treasury which entitled the holder of the warrant to purchase 141,892 shares of OLBK at a strike price of 

$7.40 per share. The warrant had an expiration date of December 5, 2018. 

$10 

$60 

$110 

$160 

$210 

$260 

$310 

$360 

Old Line Bancshares (OLBK) 

Second Bid - $205,000

Market Quotes Third Party Model Valuation 

Fair Market Value Estimates of Treasury's Warrant Position 

Final Bid - $225,000

First Bid - $175,000 

$ Thousands

OLBK

Valuation Estimates

for Warrant ($thousands) Low High Estimate

First 

Bid

Second 

Bid

Final 

Bid Details

Market Quotes $28 $167 $102 $175 $205 $225 Four market indications 

Third Party $201 $308 $254 $175 $205 $225 External asset manager’s valuation estimates

Model Valuation $172 $257 $214 $175 $205 $225 Binomial option model adjusted for American style options
WARRANT DISPOSITION REPORT - UPDATE JUNE 30, 2011 37Appendix II – Warrant Disposition Details 

Bancorp Rhode Island, Inc. (BARI) 

Repurchase of BARI Warrant

On September 21, 2009, Bancorp Rhode Island, Inc. (BARI) agreed to pay $1.4 million for the warrant held 

by Treasury which entitled the holder of the warrant to purchase 192,967 shares of BARI at a strike price of 

$23.32 per share. The warrant had an expiration date of December 19, 2018. 

$600

$800

$1,000

$1,200

$1,400

$1,600

$1,800

Market Quotes Third Party Model Valuation 

Bancorp Rhode Island (BARI)

Fair Market Value Estimates of Treasury's Warrant Position

Final Bid - $1,400,000

Second - $1,125,000

First Bid - $856,773

$ Thousands

BARI

Valuation Estimates

for Warrant ($thousands) Low High Estimate

First 

Bid

Second 

Bid

Final 

Bid Details

Market Quotes $703 $1,427 $1,166 $857 $1,125 $1,400 Three market indications 

Third Party $1,196 $1,760 $1,476 $857 $1,125 $1,400 External asset manager’s valuation estimates

Model Valuation $1,200 $1,643 $1,423 $857 $1,125 $1,400 Binomial option model adjusted for American style options
38 WARRANT DISPOSITION REPORT - UPDATE JUNE 30, 2011 Appendix II – Warrant Disposition Details 

Manhattan Bancorp (MNHN) 

Repurchase of MNHN Warrant

On October 9, 2009, Manhattan Bancorp (MNHN) agreed to pay $63,363.90 for the warrant held by 

Treasury which entitled the holder of the warrant to purchase 29,480 shares of MNHN at a strike price of 

$8.65 per share. The warrant had an expiration date of December 5, 2018. 

$8 

$18 

$28 

$38 

$48 

$58 

$68 

$78 

Market Quotes Third Party Model Valuation 

Manhattan Bancorp (MNHN) 

Fair Market Value Estimates of Treasury's Warrant Position 

Final Bid - $63,363.90

$ Thousands

MNHN

Valuation Estimates

for Warrant ($thousands) Low High Estimate Final Bid Details

Market Quotes $10 $57 $34 $63 Two market indications 

Third Party $45 $54 $50 $63 External asset manager’s valuation estimates

Model Valuation $48 $64 $56 $63 Binomial option model adjusted for American style options
WARRANT DISPOSITION REPORT - UPDATE JUNE 30, 2011 39Appendix II – Warrant Disposition Details 

CenterState Banks, Inc. (CSFL) 

Repurchase of CSFL Warrant

On October 20, 2009, CenterState Banks, Inc. (CSFL) agreed to pay $212,000 for the warrants held by 

Treasury which entitled the holder of the warrant to purchase 125,413 shares of CSFL at a strike price of 

$16.67 per share. The warrant had an expiration date of November 21, 2018. 

$90

$140

$190

$240

$290

CenterState Banks, Inc. (CSFL) 

Fair Market Value Estimates of Treasury's Warrant Position 

First Bidnts - $168,053 

Final Bid - $212,000 

Market Quotes Third Party Model Valuation 

$ Thousands

CSFL

Valuation Estimates

for Warrant ($thousands) Low High Estimate First Bid Final Bid Details

Market Quotes $94 $143 $125 $168 $212 Three market indications 

Third Party $159 $268 $236 $168 $212 External asset manager’s valuation estimates

Model Valuation $153 $269 $206 $168 $212 Binomial option model adjusted for American style options
40 WARRANT DISPOSITION REPORT - UPDATE JUNE 30, 2011 Appendix II – Warrant Disposition Details 

CVB Financial Corp. (CVBF) 

Repurchase of CVBF Warrant

On October 21, 2009, CVB Financial Corp. (CVBF) agreed to pay $1.307 million for the warrant held by 

Treasury which entitled the holder of the warrant to purchase 834,761 shares of CVBF at a strike price of 

$11.68 per share. The warrant had an expiration date of December 5, 2018. 

$400 

$600 

$800 

$1,000 

$1,200 

$1,400 

$1,600 

$1,800 

CVB Financial (CVBF) 

Fair Market Value Estimates of Treasury's Warrant Position 

Market Quotes Third Party Model Valuation 

First Bid - $1,002,000 

Final Bid - $1,307,000 

$ Thousands

CVBF

Valuation Estimates

for Warrant ($thousands) Low High Estimate First Bid Final Bid Details

Market Quotes $551 $1,135 $917 $1,002 $1,307 Three market indications 

Third Party $785 $1,436 $1,110 $1,002 $1,307 External asset manager’s valuation estimates

Model Valuation $993 $1,711 $1,349 $1,002 $1,307 Binomial option model adjusted for American style options
WARRANT DISPOSITION REPORT - UPDATE JUNE 30, 2011 41Appendix II – Warrant Disposition Details 

Bank of the Ozarks, Inc. (OZRK) 

Repurchase of OZRK Warrant

On November 18, 2009, Bank of the Ozarks, Inc. (OZRK) agreed to pay $2.65 million for the warrant held 

by Treasury which entitled the holder of the warrant to purchase 379,811 shares of OZRK at a strike price of 

$29.62 per share. The warrant had an expiration date of December 12, 2018. 

$1,000 

$1,500 

$2,000 

$2,500 

$3,000 

$3,500 

Bank of the Ozarks (OZRK) 

Fair Market Value Estimates of US Treasury's Warrant Position 

Market Quotes Third Party Model Valuation 

First Bid - $2,160,743 

Final Bid - $2,650,000 

$ Thousands

OZRK

Valuation Estimates

for Warrant ($thousands) Low High Estimate First Bid Final Bid Details

Market Quotes $1,230 $3,240 $2,210 $2,161 $2,650 Three market indications 

Third Party $1,880 $3,110 $2,480 $2,161 $2,650 External asset manager’s valuation estimates

Model Valuation $1,917 $3,095 $2,509 $2,161 $2,650 Binomial option model adjusted for American style options
42 WARRANT DISPOSITION REPORT - UPDATE JUNE 30, 2011 Appendix II – Warrant Disposition Details 

LSB Corporation (LSBX) 

Repurchase of LSBX Warrant

On December 8, 2009, LSB Corporation (LSBX) agreed to pay $560,000 for the warrant held by Treasury 

which entitled the holder of the warrant to purchase 209,497 shares of LSBX at a strike price of $10.74 per 

share. The warrant had an expiration date of December 12, 2018. 

$100 

$200 

$300 

$400 

$500 

$600 

$700 

$800 

$900 

$1,000 

Market Quotes Third Party Model Valuation 

LSB Corporation (LSBX) 

Fair Market Value Estimates of Treasury's Warrant Position 

Final Bid - $560,000

First Bid - $500,000 

$ Thousands

LSBX

Valuation Estimates

for Warrant ($thousands) Low High Estimate First Bid Final Bid Details

Market Quotes $157 $883 $446 $500 $560 Four market indications 

Third Party $486 $773 $605 $500 $560 External asset manager’s valuation estimates

Model Valuation $459 $681 $569 $500 $560 Binomial option model adjusted for American style options
WARRANT DISPOSITION REPORT - UPDATE JUNE 30, 2011 43Appendix II – Warrant Disposition Details 

Wainwright Bank and Trust Company (WAIN) 

Repurchase of WAIN Warrant

On December 11, 2009, Wainwright Bank and Trust Company (WAIN) agreed to pay $568,700 for the warrants held by Treasury, which entitled the holder of the warrant to purchase 390,071 shares of WAIN at a strike 

price of $8.46 per share. The warrant had an expiration date of December 19, 2018. 

$200 

$300 

$400 

$500 

$600 

$700 

$800 

Market Quotes Third Party Model Valuation 

Wainwright Bank and Trust (WAIN) 

Fair Market Value Estimates of Treasury's Warrant Position 

Final Bid - $568,700

$ Thousands

WAIN

Valuation Estimates

for Warrant ($thousands) Low High Estimate Final Bid Details

Market Quotes $289 $780 $532 $569 Four market indications 

Third Party $491 $776 $632 $569 External asset manager’s valuation estimates

Model Valuation $449 $632 $541 $569 Binomial option model adjusted for American style options
44 WARRANT DISPOSITION REPORT - UPDATE JUNE 30, 2011 Appendix II – Warrant Disposition Details 

WesBanco, Inc. (WSBC) 

Repurchase of WSBC Warrant

On December 11, 2009, WesBanco, Inc. (WSBC) agreed to pay $950,000 for the warrant held by Treasury 

which entitled the holder of the warrant to purchase 439,282 shares of WSBC at a strike price of $25.61 per 

share. The warrant had an expiration date of December 5, 2018. 

$0 

$200 

$400 

$600 

$800 

$1,000 

$1,200 

$1,400 

Market Quotes Third Party Model Valuation 

WesBanco, Inc. (WSBC)

Fair Market Value Estimates of Treasury's Warrant Position

Final Bid - $950,000

First Bid - $825,000 

$ Thousands

WSBC

Valuation Estimates

for Warrant ($thousands) Low High Estimate First Bid Final Bid Details

Market Quotes $132 $1,204 $577 $825 $950 Four market indications 

Third Party $371 $955 $643 $825 $950 External asset manager’s valuation estimates

Model Valuation $585 $1,119 $851 $825 $950 Binomial option model adjusted for American style options
WARRANT DISPOSITION REPORT - UPDATE JUNE 30, 2011 45Appendix II – Warrant Disposition Details 

Union Bankshares Corporation (UBSH) 

Repurchase of UBSH Warrant

On December 16, 2009, Union Bankshares Corporation (UBSH) agreed to pay $450,000 for the warrant held 

by Treasury which entitled the holder of the warrant to purchase 211,318 shares of UBSH at a strike price of 

$20.94 per share. The warrant had an expiration date of December 19, 2018. 

$100 

$200 

$300 

$400 

$500 

$600 

$700 

$800 

Market Quotes Third Party Model Valuation 

Union Bankshares (UBSH) 

Fair Market Value Estimates of Treasury's Warrant Position 

First Bid - $400,000 

Final Bid - $450,000

$ Thousands

UBSH

Valuation Estimates

for Warrant ($thousands) Low High Estimate First Bid

Final 

Bid Details

Market Quotes $188 $687 $448 $400 $450 Four market indications 

Third Party $267 $595 $424 $400 $450 External asset manager’s valuation estimates

Model Valuation $279 $564 $410 $400 $450 Binomial option model adjusted for American style options
46 WARRANT DISPOSITION REPORT - UPDATE JUNE 30, 2011 Appendix II – Warrant Disposition Details 

Flushing Financial Corporation (FFIC) 

Repurchase of FFIC Warrant

On December 28, 2009, Flushing Financial Corporation (FFIC) agreed to pay $900,000 for the warrant held 

by Treasury which entitled the holder of the warrant to purchase 375,806 shares of FFIC at a strike price of 

$13.97 per share. The warrant had an expiration date of December 19, 2018. 

$400 

$600 

$800 

$1,000 

$1,200 

$1,400 

Market Quotes Third Party Model Valuation 

Flushing Financial (FFIC) 

Fair Market Value Estimates of Treasury's Warrant Position 

Second Bid - $700,000

Third Bid - $860,000

Final Bid - $900,000 

$ Thousands

First Bid - $597,000 

FFIC

Valuation Estimates

for Warrant 

($thousands) Low High Estimate First Bid

Second 

Bid

Third 

Bid

Final 

Bid Details

Market Quotes $459 $1,240 $742 $597 $700 $860 $900 Four market indications

Third Party $883 $1,131 $1,007 $597 $700 $860 $900 External asset manager’s valuation 

estimates

Model Valuation $623 $1,090 $850 $597 $700 $860 $900 Binomial option model adjusted for 

American style options
WARRANT DISPOSITION REPORT - UPDATE JUNE 30, 2011 47Appendix II – Warrant Disposition Details 

$4,000 

$5,000 

$6,000 

$7,000 

$8,000 

$9,000 

$10,000 

$11,000 

$12,000 

Market Quotes Third Party Model Valuation 

Trustmark Corporation (TRMK) 

Fair Market Value Estimates of Treasury's Warrant Position 

First Bid - $8,167,000 

Second Bid - $9,200,000 

Third Bid - $9,600,000 

Final Bid - $10,000,000 

$ Thousands

TRMK

Valuation Estimates

for Warrant 

($thousands) Low High Estimate First Bid

Second 

Bid

Third 

Bid

Final 

Bid Details

Market Quotes $4,120 $10,547 $7,601 $8,167 $9,200 $9,600 $10,000 Four market indications

Third Party $7,103 $10,942 $9,014 $8,167 $9,200 $9,600 $10,000 External asset manager’s valuation 

estimates

Model Valuation $7,876 $11,551 $9,704 $8,167 $9,200 $9,600 $10,000 Binomial option model adjusted for 

American style options

Trustmark Corporation (TRMK)

Repurchase of TRMK Warrant

On December 29, 2009, Trustmark Corporation (TRMK) agreed to pay $10,000,000 for the warrant held by 

Treasury which entitled the holder of the warrant to purchase 1,647,931 shares of TRMK at a strike price of 

$19.57 per share. The warrant had an expiration date of November 21, 2018.
48 WARRANT DISPOSITION REPORT - UPDATE JUNE 30, 2011 Appendix II – Warrant Disposition Details 

$50 

$150 

$250 

$350 

$450 

$550 

Market Quotes Third Party Model Valuation 

OceanFirst Financial Corp. (OCFC) 

 Fair Market Value Estimates of US Treasury's Warrant Position 

$ Thousands

Final Bid - $430,797 

OCFC

Valuation Estimates

for Warrant ($thousands) Low High Estimate Final Bid Details

Market Quotes $152 $392 $281 $431 Three market indications

Third Party $308 $468 $388 $431 External asset manager’s valuation estimates

Model Valuation $269 $508 $381 $431 Binomial option model adjusted for American style options

OceanFirst Financial Corp. (OCFC) 

Repurchase of OCFC Warrant

On January 21, 2010, OceanFirst Financial Corp. (OCFC) agreed to pay $430,797 for the warrant held by 

Treasury which entitled the holder of the warrant to purchase 190,427 shares of OCFC at an exercise price of 

$15.07 per share. The warrant had an expiration date January 16, 2019. 
WARRANT DISPOSITION REPORT - UPDATE JUNE 30, 2011 49Appendix II – Warrant Disposition Details 

$0 

$50 

$100 

$150 

$200 

$250 

$300 

$350 

$400 

$450 

$ Thousands

Market Quotes Third Party Model Valuation 

Monarch Financial Holdings, Inc. (MNRK) 

Fair Market Value Estimates of US Treasury's Warrant Position 

First Bid - $209,117.74 

Second Bid - $250,000 

Final Bid - $260,000 

MNRK

Valuation Estimates

for Warrant ($thousands) Low High Estimate First Bid

Second 

Bid

Final 

Bid Details

Market Quotes $132 $394 $263 $209 $250 $260 Two market indications 

Third Party $201 $297 $260 $209 $250 $260 External asset manager’s valuation estimates

Model Valuation $230 $321 $275 $209 $250 $260 Binomial option model adjusted for American style options

Monarch Financial Holdings, Inc. (MNRK) 

Repurchase of MNRK Warrant

On February 1, 2010, Monarch Financial Holdings, Inc. (MNRK) agreed to pay $260,000 for the warrant 

held by Treasury which entitled the holder of the warrant to purchase 132,353 shares of MNRK at an exercise 

price of $8.33 per share. The warrant had an expiration date December 19, 2018. 
50 WARRANT DISPOSITION REPORT - UPDATE JUNE 30, 2011 Appendix II – Warrant Disposition Details 

$1,000 

$1,500 

$2,000 

$2,500 

$3,000 

$3,500 

$4,000 

$4,500 

$5,000 

$5,500 

$6,000 

Market Quotes Third Party Model Valuation 

$ Thousands Umpqua Holdings Corporation (UMPQ) 

Fair Market Value Estimates of US Treasury's Warrant Position 

First Bid - $2,055,161.30 

Second Bid - $3,610,419 

Third Bid - $4,250,000 

Final Bid - $4,500,000 

UMPQ

Valuation Estimates

for Warrant 

($thousands) Low High Estimate First Bid

Second 

Bid

Third 

Bid

Final 

Bid Details

Market Quotes $3,210 $3,444 $3,327 $2,055 $3,610 $4,250 $4,500 Two market indications

Third Party $3,255 $5,088 $4,155 $2,055 $3,610 $4,250 $4,500 External asset manager’s valuation 

estimates

Model Valuation $3,361 $5,103 $4,265 $2,055 $3,610 $4,250 $4,500 Binomial option model adjusted for 

American style options

Umpqua Holdings Corporation (UMPQ)

Repurchase of UMPQ Warrant

On March 22, 2010, Umpqua Holdings Corporation (UMPQ) agreed to pay $4.5 million for the warrant held by 

Treasury which entitled the holder of the warrant to purchase 1,110,898 shares of UMPQ at an exercise price of $14.46 

per share. The warrant had an expiration date November 14, 2018.
WARRANT DISPOSITION REPORT - UPDATE JUNE 30, 2011 51Appendix II – Warrant Disposition Details 

$9,000 

$1 1,000 

$13,000 

$15,000 

$17,000 

$19,000 

$21,000 

$23,000 

$25,000 

$ Thousands

Market Quotes Third Party Model Valuation 

City National Corporation (CYN) 

Fair Market Value Estimates of US Treasury's Warrant Position

First Bid - $11,900,000 

Second Bid - $17,500,000 

Final Bid - $18,500,000 

CYN

Valuation Estimates

for Warrant ($thousands) Low High Estimate First Bid Second Bid Final Bid Details

Market Quotes $12,585 $15,338 $14,278 $11,900 $17,500 $18,500 Three market indications

Third Party $14,298 $21,800 $18,016 $11,900 $17,500 $18,500 External asset manager’s valuation 

estimates

Model Valuation $14,816 $21,947 $18,365 $11,900 $17,500 $18,500 Binomial option model adjusted for 

American style options

City National Corporation (CYN) 

Repurchase of CYN Warrant

On April 6, 2010, City National Corporation (CYN) agreed to pay $18.5 million for the warrant held by 

Treasury which entitled the holder of the warrant to purchase 1,128,668 shares of CYN at an exercise price of 

$53.16 per share. The warrant had an expiration date November 21, 2018. 
52 WARRANT DISPOSITION REPORT - UPDATE JUNE 30, 2011 Appendix II – Warrant Disposition Details 

$2,000 

$3,000 

$4,000 

$5,000 

$6,000 

$7,000 

$8,000 

$9,000 

$10,000 

Market Quotes Third Party Model Valuation 

$ Thousands SVB Financial Group (SIVB) 

Fair Market Value Estimates of US reasury's Warrant Position 

First Bid - $3,800,000 

Second Bid - $6,200,000 

Final Bid - $6,820,000 

SIVB

Valuation Estimates

for Warrant ($thousands) Low High Estimate First Bid Second Bid Final Bid Details

Market Quotes $4,483 $6,289 $5,524 $3,800 $6,200 $6,820 Three market indications

Third Party $7,690 $9,040 $8,364 $3,800 $6,200 $6,820 External asset manager’s valuation 

estimates

Model Valuation $5,704 $7,897 $6,782 $3,800 $6,200 $6,820 Binomial option model adjusted for 

American style options

SVB Financial Group (SIVB) 

Repurchase of SIVB Warrant

On June 8, 2010, SVB Financial Group (SIVB) agreed to pay $6.8 million for the warrant held by Treasury 

which entitled the holder of the warrant to purchase 354,058 shares of SIVB at an exercise price of $49.78 per 

share. The warrant had an expiration date December 12, 2018. 
WARRANT DISPOSITION REPORT - UPDATE JUNE 30, 2011 53Appendix II – Warrant Disposition Details 

Market Quotes Third Party Model Valuation 

$120,000

$130,000

$140,000

$150,000

$160,000

$170,000

$180,000

$190,000

$200,000

$210,000

$220,000

Discover Financial Services (DFS)

Fair Market Value Estimates of US Treasury's Warrant Position

Third Bid - $165,000,000

$ Millions

Final Bid - $172,000,000

Note: The chart above shows Treasury’s warrant valuation analysis at the time of DFS’s last bid in late June 2010. 

Two months earlier, DFS had placed bids of $165 million and $180 million on 4/23/10 and 5/4/10, respectively. At 

that time, DFS’s stock price was approximately 10% higher than it was in late June 2010. Accordingly, the bids were 

below the mid points of Treasury’s various valuation metrics and were not accepted. When considering the $180 

million bid in early May 2010, the mid point valuation estimates were as follows: market indications $189 million, 

third party $198 million, and Treasury’s model $186 million. 

DFS

Valuation Estimates

for Warrant ($millions) Low High Estimate Third Bid Final Bid Details

Market Quotes $164 $168 $166 $165 $172 Three market indications

Third Party $151 $188 $169 $165 $172 External asset manager’s valuation estimates

Model Valuation $137 $168 $152 $165 $172 Binomial option model adjusted for American style options

Discover Financial Services (DFS) 

Repurchase of DFS Warrant

On June 29, 2010, Discover Financial Services (DFS) agreed to pay $172 million for the warrant held by 

Treasury which entitled the holder of the warrant to purchase 20,500,413 shares of DFS at an exercise price of 

$8.96 per share. The warrant had an expiration date of March 13, 2019. 
54 WARRANT DISPOSITION REPORT - UPDATE JUNE 30, 2011 Appendix II – Warrant Disposition Details 

$0

$50

$100

$150

$200

$250

$300

$350

$400

$450

$500

Bar Harbor Bankshares (BHB)

Fair Market Value Estimates of US Treasury's Warrant Position

Third Bid - $225,000

Final Bid - $250,000

Market Quotes Third Party Model Valuation 

$ Thousands

BHB

Valuation Estimates

for Warrant ($thousands) Low High Estimate Third Bid Final Bid Details

Market Quotes $189 $196 $193 $225 $250 Two market indications

Third Party $239 $393 $315 $225 $250 External asset manager’s valuation estimates

Model Valuation $182 $329 $255 $225 $250 Binomial option model adjusted for American style options

NOTE: The chart above shows Treasury’s warrant valuation analysis at the time of BHB’s last bid in July 2010. 

Months earlier, BHB had placed bids of $67,000 and $175,000 on 3/10/10 and 4/23/10, respectively. The bids 

were below Treasury’s various valuation metrics at that time and were not accepted. 

Bar Harbor Bankshares (BHB) 

Repurchase of BHB Warrant

On July 22, 2010, Bar Harbor Bankshares (BHB) agreed to pay $250,000 for the warrant held by Treasury which 

entitled the holder of the warrant to purchase 52,455 shares of BHB at an exercise price of $26.81 per share. The 

warrant had an expiration date of January 16, 2019. 
WARRANT DISPOSITION REPORT - UPDATE JUNE 30, 2011 55Appendix II – Warrant Disposition Details 

Market Quotes Third Party Model Valuation 

$0

$100

$200

$300

$400

$500

$600

$700

$800

$900

Citizens and Northern Corporation (CZNC)

Fair Market Value Estimates of US Treasury's Warrant Position

Final Bid - $400,000

$ Thousands

CZNC

Valuation Estimates

for Warrant ($thousands) Low High Estimate Final Bid Details

Market Quotes $127 $378 $245 $400 Three market indications

Third Party $620 $890 $753 $400 External asset manager’s valuation estimates

Model Valuation $217 $415 $316 $400 Binomial option model adjusted for American style options

Citizens & Northern Corporation (CZNC)

Repurchase of CZNC Warrant

On August 25, 2010, Citizens & Northern Corporation (CZNC) agreed to pay $400,000 for the warrant held by 

Treasury which entitled the holder of the warrant to purchase 194,794 shares of CZNC at an exercise price of $20.36 

per share. The warrant had an expiration date of January 16, 2019.
56 WARRANT DISPOSITION REPORT - UPDATE JUNE 30, 2011 Appendix II – Warrant Disposition Details 

$0

$500

$1,000

$1,500

$2,000

$2,500

$3,000

$3,500

$4,000

Columbia Banking System, Inc. (COLB)

Fair Market Value Estimates of US Treasury's Warrant Position

Final Bid - $3,301,647

Market Quotes Third Party Model Valuation 

$ Thousands

COLB

Valuation Estimates

for Warrant ($thousands) Low High Estimate Final Bid Details

Market Quotes $1,950 $3,383 $2,632 $3,302 Four market indications

Third Party $2,639 $3,454 $3,042 $3,302 External asset manager’s valuation estimates

Model Valuation $2,497 $3,299 $2,893 $3,302 Binomial option model adjusted for American style options

Columbia Banking System (COLB) 

Repurchase of COLB Warrant

On August 25, 2010, Columbia Banking System (COLB) agreed to pay $3.3 million for the warrant held by 

Treasury which entitled the holder of the warrant to purchase 398,023 shares of COLB at an exercise price of 

$14.49 per share. The warrant had an expiration date of November 21, 2018.
WARRANT DISPOSITION REPORT - UPDATE JUNE 30, 2011 57Appendix II – Warrant Disposition Details 

$2,000

$2,500

$3,000

$3,500

$4,000

$4,500

$5,000

$5,500

$6,000

The Bancorp, Inc. (TBBK)

Fair Market Value Estimates of US Treasury's Warrant Position

Final Bid for Warrants - $4,753,984.55

Market Quotes Third Party Model Valuation 

$ Thousands

Note: The chart above shows Treasury’s warrant valuation analysis at the time of TBBK’s last bid in early 

September 2010. Months earlier, TBBK had placed bids of $3.55 million and $4.85 million on 3/15/10 and 

3/29/10, respectively. At that time, TBBK’s stock price was more than 20% higher than it was in September 

2010. Accordingly, the bids were below some of the mid points of Treasury’s various valuation metrics and were 

not accepted. When considering the $4.85 million bid in late March 2010, the mid point valuation estimates 

were as follows: market indications $6.0 million, third party $4.6 million, and Treasury’s model $4.8 million.

TBBK

Valuation Estimates

for Warrant ($thousands) Low High Estimate Final Bid Details

Market Quotes $3,666 $4,578 $4,122 $4,754 Two market indications

Third Party $4,558 $5,048 $4,960 $4,754 External asset manager’s valuation estimates

Model Valuation $3,323 $3,881 $3,742 $4,754 Binomial option model adjusted for American style options

The Bancorp, Inc. (TBBK) 

Repurchase of TBBK Warrant

On September 2, 2010, The Bancorp, Inc. (TBBK) agreed to pay $4.75 million for the warrant held by 

Treasury which entitled the holder of the warrant to purchase 980,203 shares of TBBK at an exercise price of 

$3.46 per share. The warrant had an expiration date of December 12, 2018.
58 WARRANT DISPOSITION REPORT - UPDATE JUNE 30, 2011 Appendix II – Warrant Disposition Details 

Market Quotes Third Party Model Valuation 

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

$14,000

$16,000

$18,000

$20,000

Fulton Financial Corporation (FULT)

Fair Market Value Estimates of US Treasury's Warrant Position

First Bid - $8,000,000

Second Bid - $9,500,000

Final Bid - $10,800,000

$ Thousands

FULT

Valuation Estimates

for Warrant ($thousands) Low High Estimate

First 

Bid

Second 

Bid

Final 

Bid Details

Market Quotes $8,525 $11,648 $10,288 $8,000 $9,500 $10,800 Four market indications

Third Party $6,832 $13,168 $9,918 $8,000 $9,500 $10,800 External asset manager’s valuation estimates

Model Valuation $7,976 $13,155 $10,537 $8,000 $9,500 $10,800 Binomial option model adjusted for American style options

Fulton Financial Corporation (FULT)

Repurchase of FULT Warrant

On September 3, 2010, Fulton Financial Corporation (FULT) agreed to pay $10.8 million for the warrant held 

by Treasury which entitled the holder of the warrant to purchase 5,509,756 shares of FULT at an exercise price 

of $10.25 per share. The warrant had an expiration date of December 23, 2018.
WARRANT DISPOSITION REPORT - UPDATE JUNE 30, 2011 59Appendix II – Warrant Disposition Details 

FPTB

Valuation Estimates

for Warrant ($thousands) Low High Estimate First Bid Final Bid Details

First PacTrust Bancorp, Inc. (FPTB) 

Repurchase of FPTB Warrant

On December 30, 2010, First PacTrust Bancorp, Inc. agreed to pay $1.0 million for the warrant held by Treasury 

which entitled the holder of the warrant to purchase 280,795 shares of FPTB at an exercise price of $10.31 per 

share. The warrant had an expiration date of November 21, 2018. 

$200 

$400 

$600 

$800 

$1,000 

$1,200 

$1,400 

$ 000s First PacTrust Bancorp, Inc. (FPTB) 

Fair Market Value Estimates of US Treasury's Warrant Position 

First Bid - $291,152 

Final Bid - $1,003,227 

Market Quotes Third Party Model Valuation 

Market Quotes $686 $1,253 $966 $291 $1,003 Three market indications 

Third Party $848 $1,231 $1,034 $291 $1,003 External asset manager's valuation estimates

Model Valuation $693 $989 $837 $291 $1,003 Binomial option model adjusted for American style options
60 WARRANT DISPOSITION REPORT - UPDATE JUNE 30, 2011 Appendix II – Warrant Disposition Details 

HBAN

Valuation Estimates 

for Warrant ($thousands) Low High Estimate Final Bid Details

Market Quotes $41,235 $63,149 $48,125 $49,100 Four market indications

Third Party $32,069 $52,284 $42,038 $49,100 External asset manager’s valuation estimates

Model Valuation $37,220 $57,182 $46,895 $49,100 Binomial option model adjusted for American style options

Huntington Bancshares Incorporated (HBAN)

Repurchase of HBAN Warrant

On January 13, 2011, Huntington Bancshares Incorporated (HBAN) agreed to pay $49.1 million for the warrant 

held by Treasury which entitled the holder of the warrant to purchase 23,562,994 shares of HBAN at an exercise 

price of $8.90 per share. The warrant had an expiration date of November 14, 2018.

$10,000 

$15,000 

$20,000 

$25,000 

$30,000 

$35,000 

$40,000 

$45,000 

$50,000 

$55,000 

$60,000 

$65,000 

$70,000 

Market Quotes Third Party Model Valuation 

$ 000s Huntington Bancshares Incorporated (HBAN) 

Fair Market Value Estimates of US Treasury's Warrant Position 

Final Bid - $49,100,000 
WARRANT DISPOSITION REPORT - UPDATE JUNE 30, 2011 61Appendix II – Warrant Disposition Details 

SUSQ

Valuation Estimates

for Warrant ($thousands) Low High Estimate First Bid Final Bid Details

Market Quotes $4,282 $4,777 $4,572 $4,482 $5,269 Three market indications

Third Party $4,421 $7,235 $5,441 $4,482 $5,269 External asset manager’s valuation estimates

Model Valuation $3,350 $6,720 $5,029 $4,482 $5,269 Binomial option model adjusted for American style options

Susquehanna Bancshares, Inc. (SUSQ)

Repurchase of SUSQ Warrant

On January 12, 2011, Susquehanna Bancshares, Inc. (SUSQ) agreed to pay $5.3 million for the warrant held by 

Treasury which entitled the holder of the warrant to purchase 3,028,264 shares of SUSQ at an exercise price of 

$14.86 per share. The warrant had an expiration date of December 12, 2018.

$2,000 

$3,000 

$4,000 

$5,000 

$6,000 

$7,000 

$8,000 

Market Quotes Third Party Model Valuation 

$ 000s Susquehanna Bancshares, Inc. (SUSQ) 

Fair Market Value Estimates of US Treasury's Warrant Position 

First Bid - $4,481,804 

Final Bid - $5,269,179 
62 WARRANT DISPOSITION REPORT - UPDATE JUNE 30, 2011 Appendix II – Warrant Disposition Details 

EWBC

Valuation Estimates 

for Warrant ($thousands) Low High Estimate First Bid Final Bid Details

Market Quotes $12,645 $14,596 $13,655 $12,000 $14,500 Three market indications

Third Party $12,701 $16,585 $14,588 $12,000 $14,500 External asset manager’s valuation estimates

Model Valuation $12,036 $15,754 $13,851 $12,000 $14,500 Binomial option model adjusted for American style 

options

East West Bancorp, Inc. (EWBC)

Repurchase of EWBC Warrant

On January 21, 2011, East West Bancorp, Inc. (EWBC) agreed to pay $14.5 million for the warrant held by 

Treasury which entitled the holder of the warrant to purchase 1,517,555 shares of EWBC at an exercise price of 

$15.15 per share. The warrant had an expiration date of December 5, 2018.

$10,000 

$11,000 

$12,000 

$13,000 

$14,000 

$15,000 

$16,000 

$17,000 

$18,000 

Market Quotes Third Party Model Valuation 

$ 000s East West Bancorp, Inc. (EWBC) 

Fair Market Value Estimates of US Treasury's Warrant Position 

First Bid - $12,000,000 

Final Bid - $14,500,000 
WARRANT DISPOSITION REPORT - UPDATE JUNE 30, 2011 63Appendix II – Warrant Disposition Details 

SASR

Valuation Estimates

for Warrant ($thousands) Low High Estimate

 First 

Bid 

Second 

Bid 

 Third 

Bid 

Fourth 

Bid 

 Final 

Bid Details

Market Quotes $3,999 $4,291 $4,140 $3,077 $3,430 $3,750 $4,200 $4,450 Three market indications

Third Party $3,538 $5,021 $4,277 $3,077 $3,430 $3,750 $4,200 $4,450 External asset manager’s valuation 

estimates

Model Valuation $3,582 $5,073 $4,323 $3,077 $3,430 $3,750 $4,200 $4,450 Binomial option model adjusted for 

American style options

Sandy Spring Bancorp, Inc. (SASR)

Repurchase of SASR Warrant

On February 11, 2011, Sandy Spring Bancorp, Inc. (SASR) agreed to pay $4.5 million for the warrant held by 

Treasury which entitled the holder of the warrant to purchase 651,547 shares of SASR at an exercise price of 

$19.13 per share. The warrant had an expiration date of December 5, 2018.

$1,000 

$1,500 

$2,000 

$2,500 

$3,000 

$3,500 

$4,000 

$4,500 

$5,000 

$5,500 

$6,000 

Third Party Model Valuation 

$ 000s Sandy Spring Bancorp, Inc. (SASR) 

Fair Market Value Estimates of US Treasury's Warrant Position 

First Bid - $3,076,946 

Second Bid - $3,430,000 

Third Bid - $3,750,000 

Fourth Bid - $4,200,000 

Final Bid - $4,450,000 

Market Quotes 
64 WARRANT DISPOSITION REPORT - UPDATE JUNE 30, 2011 Appendix II – Warrant Disposition Details 

WBCO

Valuation Estimates 

for Warrant ($thousands) Low High Estimate First Bid Second Bid Final Bid Details

Market Quotes $1,599 $1,696 $1,647 $1,370 $1,575 $1,625 Four market indications

Third Party $1,405 $1,773 $1,585 $1,370 $1,575 $1,625 External asset manager’s valuation 

estimates

Model Valuation $1,430 $1,708 $1,559 $1,370 $1,575 $1,625 Binomial option model adjusted for 

American style options

Washington Banking Company (WBCO)

Repurchase of WBCO Warrant

On February 16, 2011, Washington Banking Company (WBCO) agreed to pay $1.6 million for the warrant held 

by Treasury which entitled the holder of the warrant to purchase 246,082 shares of WBCO at an exercise price of 

$8.04 per share. The warrant had an expiration date of January 16, 2019.

$1,100 

$1,200 

$1,300 

$1,400 

$1,500 

$1,600 

$1,700 

$1,800 

$1,900 

Market Quotes Third Party Model Valuation 

$ 000s Washington Banking Company (WBCO) 

Fair Market Value Estimates of US Treasury's Warrant Position 

First Bid - $1,370,000

Second Bid - $1,575,000

Final Bid - $1,625,000
WARRANT DISPOSITION REPORT - UPDATE JUNE 30, 2011 65Appendix II – Warrant Disposition Details 

SRCE

Valuation Estimates

for Warrant ($thousands) Low High Estimate First Bid 

 Second 

Bid Final Bid Details

Market Quotes $3,233 $4,019 $3,755 $3,250 $3,750 $3,750 four market indications

Third Party $2,566 $4,528 $3,527 $3,250 $3,750 $3,750 External asset manager’s valuation estimates

Model Valuation $3,173 $4,820 $3,996 $3,250 $3,750 $3,750 Binomial option model adjusted for American 

style options

1st Source Corporation (SRCE)

Repurchase of SRCE Warrant

On March 2, 2011, 1st Source Corporation (SRCE) agreed to pay $3.8 million for the warrant held by Treasury 

which entitled the holder of the warrant to purchase 837,947 shares of SRCE at an exercise price of $19.87 per 

share. The warrant had an expiration date of January 23, 2019.

$2,000 

$2,500 

$3,000 

$3,500 

$4,000 

$4,500 

$5,000 

$5,500 

Market Quotes Third Party Model Valuation 

$ 000s 1st Source Corporation (SRCE) 

Fair Market Value Estimates of US Treasury's Warrant Position 

First Bid - $3,250,000 

Second and Final Bids - 

$3,750,000 
66 WARRANT DISPOSITION REPORT - UPDATE JUNE 30, 2011 Appendix II – Warrant Disposition Details 

FHN

Valuation Estimates 

for Warrant ($thousands) Low High Estimate First Bid Final Bid Details

Market Quotes $57,240 $84,085 $70,318 $51,948 $79,700 Four market indications

Third Party $64,119 $79,258 $74,063 $51,948 $79,700 External asset manager’s valuation estimates

Model Valuation $74,165 $95,802 $84,485 $51,948 $79,700 Binomial option model adjusted for American style 

options

First Horizon National Corporation (FHN)

Repurchase of FHN Warrant

On March 4, 2011, First Horizon National Corporation (FHN) agreed to pay $79.7 million for the warrant held 

by Treasury which entitled the holder of the warrant to purchase 14,842,321 shares of FHN at an exercise price 

of $8.76 per share. The warrant had an expiration date of November 14, 2018.

$40,000 

$45,000 

$50,000 

$55,000 

$60,000 

$65,000 

$70,000 

$75,000 

$80,000 

$85,000 

$90,000 

$95,000 

$100,000 

$105,000 

$110,000 

Market Quotes Third Party Model Valuation 

$ 000s First Horizon National Corporation (FHN) 

Fair Market Value Estimates of US Treasury's Warrant Position 

First Bid - $51,948,124 

Final Bid - $79,700,000 
WARRANT DISPOSITION REPORT - UPDATE JUNE 30, 2011 67Appendix II – Warrant Disposition Details 

FITB

Valuation Estimates

for Warrant ($thousands) Low High Estimate First Bid Final Bid Details

Market Quotes $260,454 $298,019 $275,665 $273,919 $280,026 Three market indications

Third Party $237,281 $312,739 $278,717 $273,919 $280,026 External asset manager’s valuation estimates

Model Valuation $250,920 $333,588 $291,403 $273,919 $280,026 Binomial option model adjusted for American 

style options

Fifth Third Bancorp (FITB)

Repurchase of FITB Warrant

On March 14, 2011, Fifth Third Bancorp (FITB) agreed to pay $280.0 million for the warrant held by Treasury 

which entitled the holder of the warrant to purchase 43,617,747 shares of FITB at an exercise price of $11.72 

per share. The warrant had an expiration date of December 31, 2018.

$200,000 

$220,000 

$240,000 

$260,000 

$280,000 

$300,000 

$320,000 

$340,000 

$360,000 

$380,000 

$400,000 

Market Quotes Third Party Model Valuation 

$ 000s Fifth Third Bancorp (FITB) 

Fair Market Value Estimates of US Treasury's Warrant Position 

First Bid - $273,919,451 

Second and Final Bids - $280,025,936 
68 WARRANT DISPOSITION REPORT - UPDATE JUNE 30, 2011 Appendix II – Warrant Disposition Details 

NPBC

Valuation Estimates 

for Warrant ($thousands) Low High Estimate First Bid 

 Second 

Bid 

 Third 

Bid Final Bid Details

Market Quotes $791 $1,717 $1,187 $486 $765 $882 $1,000 Thrree market indications

Third Party $538 $1,187 $847 $486 $765 $882 $1,000 External asset manager’s 

valuation estimates

Model Valuation $494 $1,142 $816 $486 $765 $882 $1,000 

Binomial option model 

adjusted for American style 

options

National Penn Bancshares, Inc. (NPBC)

Repurchase of NPBC Warrant

On April 8, 2011, National Penn Bancshares, Inc. (NPBC) agreed to pay $1.0 million for the warrant held by 

Treasury which entitled the holder of the warrant to purchase 735,294 shares of NPBC at an exercise price of 

$15.30 per share. The warrant had an expiration date of December 12, 2018.

Market Quotes Third Party Model Valuation 

National Penn Bancshares, Inc. (NPBC) 

Fair Market Value Estimates of US Treasury's Warrant Position 

$200 

$400 

$600 

$800 

$1,000 

$1,200 

$1,400 

$1,600 

$1,800 

$ 000s 

First Bid - $485,924 

Second Bid - $764,705 

Third Bid - $882,353 

Final Bid - $1,000,000 
WARRANT DISPOSITION REPORT - UPDATE JUNE 30, 2011 69Appendix II – Warrant Disposition Details 

BBNK

Valuation Estimates 

for Warrant ($thousands) Low High Estimate First Bid Final Bid Details

Market Quotes $949 $1,700 $1,295 $1,150 $1,395 Thrree market indications

Third Party $960 $1,323 $1,182 $1,150 $1,395 External asset manager’s valuation estimates

Model Valuation $999 $1,305 $1,193 $1,150 $1,395 Binomial option model adjusted for American style options

Bridge Capital Holdings (BBNK)

Repurchase of BBNK Warrant

On April 8, 2011, Bridge Capital Holdings (BBNK) agreed to pay $1.4 million for the warrant held by Treasury 

which entitled the holder of the warrant to purchase 396,412 shares of BBNK at an exercise price of $9.03 per 

share. The warrant had an expiration date of December 23, 2018.

$600 

$800 

$1,000 

$1,200 

$1,400 

$1,600 

$1,800 

$2,000 

Market Quotes Third Party Model Valuation 

Bridge Capital Holdings (BBNK) 

Fair Market Value Estimates of US Treasury's Warrant Position 

$ 000s 

First Bid - $1,150,000 

Final Bid - $1,395,000 
70 WARRANT DISPOSITION REPORT - UPDATE JUNE 30, 2011 Appendix II – Warrant Disposition Details 

KEY

Valuation Estimates

for Warrant ($thousands) Low High Estimate First Bid Final Bid Details

Market Quotes $56,623 $69,843 $62,763 $63,000 $70,000 Three market indications

Third Party $43,498 $80,467 $61,658 $63,000 $70,000 External asset manager’s valuation estimates

Model Valuation $46,886 $84,263 $65,537 $63,000 $70,000 Binomial option model adjusted for American style 

options

KeyCorp (KEY)

Repurchase of KEY Warrant

On April 18, 2011, KeyCorp (KEY) agreed to pay $70.0 million for the warrant held by Treasury which entitled 

the holder of the warrant to purchase 35,244,361 shares of KEY at an exercise price of $10.64 per share. The 

warrant had an expiration date of November 14, 2018.

Market Quotes Third Party Model Valuation 

KeyCorp (KEY) 

Fair Market Value Estimates of US Treasury's Warrant Position 

First Bid - $63,000,000 

Final Bid - $70,000,000 

$30,000 

$40,000 

$50,000 

$60,000 

$70,000 

$80,000 

$90,000 

$100,000 

$ 000s 
WARRANT DISPOSITION REPORT - UPDATE JUNE 30, 2011 71Appendix II – Warrant Disposition Details 

FSI

Valuation Estimates

for Warrant ($thousands) Low High Estimate First Bid Second Bid Final Bid Details

Market Quotes $1,275 $1,940 $1,669 $1,418 $1,853 $2,080 Five market indications

Third Party $2,090 $2,769 $2,428 $1,418 $1,853 $2,080 External asset manager’s valuation 

estimates

Model Valuation $1,763 $2,391 $2,075 $1,418 $1,853 $2,080 Binomial option model adjusted for 

American style options

Financial Institutions, Inc. (FISI)

Repurchase of FISI Warrant

On May 2, 2011, Financial Institutions, Inc. (FISI) agreed to pay $2.1 million for the warrant held by Treasury 

which entitled the holder of the warrant to purchase 378,175 shares of FISI at an exercise price of $14.88 per 

share. The warrant had an expiration date of December 23, 2018.

$500 

$1,000 

$1,500 

$2,000 

$2,500 

$3,000 

$3,500 

Market Quotes Third Party Model Valuation 

Financial Institutions, Inc. (FISI) 

Fair Market Value Estimates of US Treasury's Warrant Position 

$ 000s 

First Bid - $1,418,156 

Second Bid - $1,853,058 

Final Bid - $2,079,963 
72 WARRANT DISPOSITION REPORT - UPDATE JUNE 30, 2011 Appendix II – Warrant Disposition Details 

STL

Valuation Estimates 

for Warrant ($thousands) Low High Estimate Final Bid Details

Market Quotes $444 $734 $633 $946 Four market indications

Third Party $673 $1,193 $926 $946 External asset manager’s valuation estimates

Model Valuation $657 $1,214 $935 $946 Binomial option model adjusted for American style options

Sterling Bancorp (STL)

Repurchase of STL Warrant

On May 13, 2011, Sterling Bancorp (STL) agreed to pay $945,775 for the warrant held by Treasury which 

entitled the holder of the warrant to purchase 516,817 shares of STL at an exercise price of $12.19 per share. 

The warrant had an expiration date of December 23, 2018.

$300 

$500 

$700 

$900 

$1,100 

$1,300 

$1,500 

Market Quotes Third Party Model Valuation 

Sterling Bancorp (STL) 

Fair Market Value Estimates of US Treasury's Warrant Position 

$ 000s 

Final Bid - $945,775 
WARRANT DISPOSITION REPORT - UPDATE JUNE 30, 2011 73Appendix II – Warrant Disposition Details 

WTNY/HBHC

Valuation Estimates

for Warrant ($thousands) Low High Estimate First Bid Final Bid Details

Market Quotes $3,810 $6,259 $4,920 $6,000 $6,900 Three market indications

Third Party $4,290 $8,360 $6,193 $6,000 $6,900 External asset manager’s valuation estimates

Model Valuation $4,411 $8,334 $6,367 $6,000 $6,900 Binomial option model adjusted for American 

style options

Whitney Holding Company / Hancock Holding Company WTNY/HBHC

Repurchase of WTNCY/HBHC Warrant

On May 13, 2011, Hancock Holding Company (HBHC) agreed to pay $6.9 million for the Whitney Holding 

Company (WTNY) warrant held by Treasury which entitled the holder of the warrant to purchase 1,100,000 shares of 

HBHC at an exercise price of $40.91 per share. The warrant had an expiration date of December 19, 2018.

$3,000 

$4,000 

$5,000 

$6,000 

$7,000 

$8,000 

$9,000 

$10,000 

Market Quotes Third Party Model Valuation 

Whitney Holding Corporation (WTNY) 

Fair Market Value Estimates of US Treasury's Warrant Position 

$ 000s 

First Bid - $6,000,000 

Final Bid - $6,900,000 
74 WARRANT DISPOSITION REPORT - UPDATE JUNE 30, 2011 Appendix II – Warrant Disposition Details 

Capital One Financial Corp. (COF) 

Sale of COF Warrant

On December 3, 2009, Treasury auctioned the Capital One Financial Corp. (COF) warrant for $149 million 

in gross proceeds. The warrant entitled the holder to purchase 12,657,960 shares of COF at a strike price of 

$42.13 per share and expired on November 14, 2018. 

NOTE: Above analysis was done to evaluate COF’s bid on 6/30/09 and is not directly comparable to the auction results on 12/3/09 as market conditions changed over the intervening five months. In particular, COF’s 

stock price appreciated 69% while short-term implied volatility in the stock declined slightly.

$0 

$20,000 

$40,000 

$60,000 

$80,000 

$100,000 

$120,000 

$140,000 

$160,000 

Market Quotes Third Party Model Valuation 

Final Bid - $46,500,000 

 Capital One Financial (COF) 

Fair Market Value Estimates of Treasury's Warrant Position 

$ Millions

COF

Valuation Estimates

for Warrant ($millions) Low High Estimate Final Bid Details

Market Quotes $2 $70 $30 $46.5 Seven market indications

Third Party $107 $148 $124 $46.5 External asset manager’s valuation estimates

Model Valuation $86 $131 $108 $46.5 Binomial option model adjusted for American style options
WARRANT DISPOSITION REPORT - UPDATE JUNE 30, 2011 75Appendix II – Warrant Disposition Details 

JP Morgan Chase & Co. (JPM) 

Sale of JPM Warrant

On December 10, 2009, Treasury auctioned the JPMorgan Chase & Co. (JPM) warrant for $950 million 

in gross proceeds. The warrant entitled the holder to purchase 88,401,697 shares of JPM at a strike price of 

$42.42 per share and expired on October 28, 2018. 

$400,000 

$500,000 

$600,000 

$700,000 

$800,000 

$900,000 

$1,000,000 

$1,100,000 

$1,200,000 

$1,300,000 

$1,400,000 

Market Quotes Third Party Model Valuation 

JPMorgan (JPM) 

Fair Market Value Estimates of Treasury's Warrant Position 

Final Bid - $825,539,247 

$ Millions

JPM

Valuation Estimates

for Warrant ($millions) Low High Estimate Final Bid Details

Market Quotes $488 $1,137 $658 $825.5 Seven market indications

Third Party $875 $1,252 $1,063 $825.5 External asset manager’s valuation estimates

Model Valuation $900 $1,097 $998 $825.5 Binomial option model adjusted for American style options

NOTE: Above analysis was done to evaluate JPM’s bid on 6/17/09 and is not directly comparable to the 

auction results on 12/10/09 as market conditions changed over the intervening six months. In particular, JPM’s 

stock price appreciated 26% while short-term implied volatility in the stock declined more than 25%.
76 WARRANT DISPOSITION REPORT - UPDATE JUNE 30, 2011 Appendix II – Warrant Disposition Details 

TCF Financial Corporation (TCB) 

Sale of TCB Warrant

On December 15, 2009, Treasury auctioned the TCF Financial Corporation (TCB) warrant for $9.6 million in 

gross proceeds. The warrant entitled the holder to purchase 3,199,988 shares of TCB at a strike price of $16.93 

per share and expired on November 14, 2018. 

$0 

$5,000 

$10,000 

$15,000 

$20,000 

$25,000 

Market Quotes Third Party Model Valuation 

TCF Financial (TCB) 

Fair Market Value Estimates of Treasury's Warrant Position 

Final Bid - $3,200,000 

$ Millions

TCB

Valuation Estimates

for Warrant ($millions) Low High Estimate Final Bid Details

Market Quotes $12.1 $20.5 $15.9 $3.2 Three market indications

Third Party $13.4 $19.1 $16.2 $3.2 External asset manager’s valuation estimates

Model Valuation $11.3 $17.2 $14.3 $3.2 Binomial option model adjusted for American style options

NOTE: Above analysis was done to evaluate TCB’s bid on 5/5/09 and is not directly comparable to the auction 

results on 12/15/09 as market conditions changed over the intervening seven months. In particular, TCB’s 

stock price declined 16% while short-term implied volatility in the stock declined more than 40%.
WARRANT DISPOSITION REPORT - UPDATE JUNE 30, 2011 77Appendix II – Warrant Disposition Details 

$500 

$1,500 

$2,500 

$3,500 

$4,500 

$5,500 

$6,500 

$7,500 

$8,500 

Final Bid - $2,291,348 

Market Quotes Third Party Model Valuation 

$ Thousands Valley National Bancorp (VLY) 

Fair Market Value Estimates of US Treasury's Warrant Position 

NOTE: The above analysis was done to evaluate VLY’s bid on 1/7/10 and is not directly comparable to the 

auction results on 5/18/10 as market conditions changed over the intervening five months. 

VLY

Valuation Estimates

for Warrant ($thousands) Low High Estimate Final Bid Details

Market Quotes $723 $3,714 $1,801 $2,291 Three market indications

Third Party $4,607 $7,791 $6,160 $2,291 External asset manager’s valuation estimates

Model Valuation $2,723 $6,564 $4,616 $2,291 Binomial option model adjusted for American style options

Valley National Bancorp (VLY)

Sale of VLY Warrant

On May 18, 2010, Treasury auctioned the Valley National Bancorp (VLY) warrant for $5.6 million in gross 

proceeds. The warrant entitled the holder to purchase 2,532,542 shares of VLY at an exercise price of $17.77 per 

share and expired on November 14, 2018. 
78 WARRANT DISPOSITION REPORT - UPDATE JUNE 30, 2011 Appendix II – Warrant Disposition Details 

NOTE: The above analysis was done to evaluate WFC’s bid on 2/22/10 and is not directly comparable to the auction 

results on 5/20/10 as market conditions changed over the intervening three months. When considering Wells Fargo’s 

offer to repurchase its warrant, Treasury concluded the market value realized through an auction would likely be in 

the high end of the valuation range. The results of past auctions have indicated that warrants associated with large well 

know companies, such as Wells Fargo, attract high levels of investor interest and competitive bidding. 

$300 

$400 

$500 

$600 

$700 

$800 

$900 

$1,000 

$1,100 

$1,200 

Market Quotes Third Party Model Valuation 

Wells Fargo & Company (WFC) 

Fair Market Value Estimates of US Treasury's Warrant Position 

First Bid - $593,600,000 

Second Bid - $700,000,000 

Final Bid - $750,000,000 

$ Millions

WFC

Valuation Estimates

for Warrant ($millions) Low High Estimate First Bid Second Bid Final Bid Details

Market Quotes $496 $871 $686 $593.6 $700 $750 Seven market indications

Third Party $690 $1,071 $879 $593.6 $700 $750 External asset manager’s valuation estimates

Model Valuation $5,551 $946 $739 $593.6 $700 $750 Binomial option model adjusted for American style options

Wells Fargo & Company (WFC)

Sale of WFC Warrant

On May 20, 2010, Treasury auctioned the Wells Fargo & Company (WFC) warrant for $849 million in gross 

proceeds. The warrant entitled the holder to purchase 110,261,688 shares of WFC at an exercise price of $34.01 

per share and expired on October 28, 2018. Wells Fargo repurchased 70,165,963 

warrant shares in the auction. 
WARRANT DISPOSITION REPORT - UPDATE JUNE 30, 2011 79Appendix II – Warrant Disposition Details 

$2,000 

$3,000 

$4,000 

$5,000 

$6,000 

$7,000 

$8,000 

$9,000 

$10,000 

Market Quotes Third Party 

$ Thousands Sterling Bancshares, Inc. (SBIB) 

Fair Market Value Estimates of US Treasury's Warrant Position 

Model Valuation 

Final Bid - $4,000,000 

NOTE: The above analysis was done to evaluate SBIB’s bid on 6/5/09 and is not directly comparable to the 

auction results on 6/9/10 as market conditions changed over the intervening twelve months. Specifically, SBIB’s 

stock price declined 28% from $7.02 on 6/5/09 to $5.00 on 6/9/10. 

SBIB

Valuation Estimates

for Warrant ($thousands) Low High Estimate Final Bid Details

Market Quotes $2,877 $6,120 $4,467 $4,000 Five market indications

Third Party $6,828 $9,092 $7,9455 $4,000 External asset manager’s valuation estimates

Model Valuation $5,491 $6,458 $5,988 $4,000 Binomial option model adjusted for American style options

Sterling Bancshares, Inc. (SBIB)

Sale of SBIB Warrant

On June 9, 2010, Treasury auctioned the Sterling Bancshares, Inc. (SBIB) warrant for $3 million in gross 

proceeds. The warrant entitled the holder to purchase 2,615,557 shares of SBIB at an exercise price of $7.18 per 

share and expired on December 12, 2018. 
80 WARRANT DISPOSITION REPORT - UPDATE JUNE 30, 2011 Appendix II – Warrant Disposition Details 

BPFH

Valuation Estimates 

for Warrant ($thousands) Low High Estimate Details

Market Quotes $7,125 $9,818 $8,391 Three market indications

Third Party $4,780 $6,950 $5,852 External asset manager’s valuation estimates

Model Valuation $6,073 $8,493 $7,273 Binomial option model adjusted for American style options

Boston Private Financial Holdings, Inc. (BPFH) 

Sale of BPFH Warrant

On February 1, 2011, Treasury auctioned the Boston Private Financial Holdings, Inc. (BPFH) warrant for $6.4 

million in gross proceeds. The warrant entitled the holder to purchase 2,887,500 shares of BPFH at a strike price 

of $8.00 per share and expired on November 21, 2018. 

$1,000 

$2,000 

$3,000 

$4,000 

$5,000 

$6,000 

$7,000 

$8,000 

$9,000 

$10,000 

$11,000 

Market Quotes Third Party Model Valuation 

$ 000s 

Boston Private Financial Holdings (BPFH) 

Fair Market Value Estimates of US Treasury's Warrant Position 

First Bid - $4,300,000 
WARRANT DISPOSITION REPORT - UPDATE JUNE 30, 2011 81Appendix III – Warrant Portfolio

Appendix III – Warrant Portfolio

Warrants Held in Institutions That Have Fully Redeemed CPP Investment

as of December 31, 2010

Institution Name Ticker Preferred 

Repurchase Date

Preferred Investment

($thousands) Warrant Shares Strike Price

QEO? (i.e. 

warrants cut by 

50%)

SunTrust Banks, Inc. STI 3/30/11 $3,500,000 11,891,280 $44.15 - 

SunTrust Banks, Inc. STI 3/30/11 1,350,000 6,008,902 33.70 - 

F.N.B. Corporation FNB 9/9/09 100,000 651,042 11.52 Yes 

Westamerica Bancorporation WABC 11/18/09 83,726 246,640 50.92 - 

Lakeland Financial Corp LKFN 6/9/10 56,044 198,269 21.20 Yes 

First Community Bancshares, Inc. FCBC 7/8/09 41,500 88,273 35.26 Yes 

West Bancorporation, Inc. WTBA 6/29/11 36,000 474,100 11.39 - 

First M&F Corporation* FMFC 9/29/10 30,000 513,113 8.77 - 

Bank of Marin Bancorp BMRC 3/31/09 28,000 154,242 27.23 - 

Shore Bancshares, Inc. SHBI 4/15/09 25,000 172,970 21.68 - 

Heritage Financial Corporation HFWA 12/22/10 24,000 138,037 13.04 Yes 

Middleburg Financial Corporation MBRG 12/23/09 22,000 104,101 15.85 Yes 

Security Federal Corporation* SFDL 9/29/10 18,000 137,966 19.57 - 

LCNB Corporation LCNB 10/21/09 13,400 217,063 9.26 - 

1st Constitution Bancorp FCCY 10/27/10 12,000 220,745 8.15 - 

BCSB Bancorp, Inc. BCSB 1/26/11 10,800 183,465 8.83 - 

United Bancorporation of Alabama, 

Inc.* UBAB 9/3/10 10,300 108,264 14.27 - 

Commerce National Bank CNBF 10/7/09 5,000 87,209 8.60 - 

First Bancshares, Inc.* FBMS 9/29/10 5,000 54,705 13.71 - 

TOTAL 19 $5,370,770 5

*Institution converted to the Community Development Capital Initiative program; warrants are still held by the CPP