Treasury auctions stake in Delmar Bancorp

The Treasury Department announced Wednesday that it raised $191.3 million in its latest auction of TARP securities, including $5.8 million for its stake in Delmar Bancorp in Salisbury.

The Troubled Asset Relief Program was created more than four years ago to infuse cash into banks at a time when the country's financial system was near collapse. In exchange for cash, the government received securities from banks that paid dividends and interest.

The government is winding down the TARP program, and this latest auction is the first in which securities were sold at banks that were behind in payments.

Delmar, parent of The Bank of Delmarva, received $9 million in TARP money and paid $832,488 in dividends, but was behind five payments totaling $613,125 as of the end of last year, according to Treasury figures. Bank officials did not return calls seeking comment on Wednesday.

Overall, Treasury said it invested $245 billion in the bank program and recovered nearly $268 billion, or a $23 billion profit for taxpayers.

Copyright © 2018, The Baltimore Sun, a Baltimore Sun Media Group publication | Place an Ad