Auction will sell Waukesha Bankshares’ TARP debts

The preferred stock and subordinated debt positions of Waukesha-based bank holding company Waukesha Bankshares Inc. will be auctioned today and tomorrow as part of the federal Troubled Asset Relief Program’s Capital Purchase Program.

Waukesha Bankshares is the holding company of Waukesha-based Sunset Bank and Savings.

During the auction, approved potential bidders, including officers of the bank, the bank itself and outside investors, can place bids on the CPP securities, said Robert Eastman, president and CEO of Waukesha Bankshares.

Investors would submit both the number of shares and suggested price per share. There are 10 other banks from around the country included in this auction.

The company was not required to repay the $5.6 million in CPP funds it received in 2009 for 30 years, but the U.S. Treasury has scheduled auctions sooner to inject banks with additional capital and spur business lending, Eastman said.

“By Tuesday evening, at the end of the auction and within seven days of approximately that date, the money will be paid back to the treasury,” he said.

Waukesha Bankshares is currently in a quiet period and has not yet released its year-end results. The results of the auction will be released, but the names of the investors will not, he said.

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