Officials at Tennessee Commerce Bancorp say they've been approved to sell $30 million of preferred stock to the U.S. Treasury as part of the government plan to boost capital levels.
Tennessee Commerce (Ticker: TNCC ) becomes the second locally based bank to get Treasury cash, which comes at the price of a 5 percent dividend over five years – 9 percent if the bank doesn't buy back the preferred shares by then. Downtown-based Pinnacle last week said it is in line to get $95 million  in fresh capital.
Like Pinnacle, Tennessee Commerce said it plans to use the government's money to build its business. The bank's capital levels have fallen this year because of strong growth – loans outstanding grew 35 percent to $986 million in the year ended Sept. 30.
To read Tennessee Commerce's release from this morning, click here .