Regional banks get over $18 billion

A diverse group of roughly a dozen regional banks announced Monday that they will get more than $18 billion in federal funds under the bailout program aimed at resuscitating the ailing sector.

Varied by size, region and specialty, most of the banks made their participation in the program known Monday morning although some disclosed it early as Sunday evening.

Among the first were two major Ohio-based players KeyCorp (KEY, Fortune 500) and Huntington Bancshares (HBAN), both of which said they had been approved to get money as part of the the Treasury's Capital Purchase Program. They will receive a total of $3.9 billion.

Others include Capital One Financial Corp. (COF, Fortune 500), Valley National Bancorp (VLY) and three Southern franchises - First Horizon National (FHN), Regions Financial (RF, Fortune 500) and SunTrust (STI, Fortune 500). Combined, the five will receive $11.7 billion.

Both the Seattle-lender Washington Federal (WFSL) as well as First Niagara Financial Group (FNFG), a small community bank headquartered just outside of Buffalo that operates some 114 branches said they would each get roughly $200 million.

Baltimore-based Provident Bancshares (PBKS) also was among those getting federal funds, as was City National (CYN), a Los Angeles bank, which got nearly $400 million from the government.

Collecting $1.9 billion was Northern Trust (NTRS, Fortune 500), a Chicago firm, which caters to affluent individuals and institutions.

Others outlined plans to apply for the program. Fifth Third Bancorp (FITB, Fortune 500), based in Cincinnati, said late Sunday that it applied for $3.4 billion and that it expects "our application will be approved shortly by Treasury."

In an effort to spur banks to lend to one another and loosen credit for consumers and businesses, regulators unveiled plans earlier this month to inject $250 billion into banks.

Nine of the country's largest financial institutions - including Citigroup, Bank of America, Goldman Sachs and Wells Fargo - were initially chosen to receive $125 billion. They are expected to take hold of the money sometime this week.

The remaining $125 billion was put up for grabs among thousands of other banks and thrifts nationwide.

PNC grabbed some of that money Friday when it announced it would get $7.7 billion from the government by selling preferred stock and related warrants, when it announced plans to buy embattled lender National City.

Regulators have stressed that there is plenty of money to go around for those banks that need capital, but it remains unclear just which banks and thrifts would be eligible.

In exchange for capital, banks must give up a stake to the U.S. government, but they also have to agree to pay a dividend on those shares and keep pay packages of their top executives in check. To top of page