Warsaw's Lakeland Financial gets preliminary OK for federal bailout program

WARSAW -- Lakeland Financial Corp., parent company of Lake City Bank, announced Tuesday that it has received preliminary approval from the U.S. Treasury Department to participate in the Trouble Asset Relief Program Capital Purchase Program.

Under the program, the Treasury will purchase up to $56 million of Lakeland's senior preferred stock along with warrants to acquire shares of its common stock.

TARP is part of the $700 billion bailout package approved by the U.S. Congress in October.

Lakeland intends to hold a special meeting in February 2009 for shareholders to vote on proposed amendments to the company's articles of incorporation to authorize preferred stock that may be issued to Treasury pursuant to the Capital Purchase Program.