April 20 (Reuters) - A growing number of U.S. banks are repaying or planning to repay the bailout money they received from the government as they seek to escape the restrictions that come with the funds.

Some banks have also said they believe repayment of the funds signals their management's confidence in their capital levels.

While the funds under the Troubled Asset Relief Program, or TARP, were mostly intended for banks weakened by the credit crunch, a significant portion of the $700 billion fund went to banks that described themselves as well capitalized.

Five of these banks have already repaid all the bailout funds they received, while some others said they plan to repay the money and have applied for permission to do so.

Some experts say regulators, mindful of their role in keeping the financial system healthy, may not be too keen to let banks repay government funds soon. [ID:nN08512860]

BANKS THAT REPAID TARP MONEY

* Signature Bank (SBNY.O: Quote, Profile, Research), based in New York, which has assets worth more than $7 billion, said it repaid $120 million it received from the U.S. Treasury on March 31.

* Old National Bancorp (ONB.N: Quote, Profile, Research), based in Evansville, Indiana, which has assets of more than $7 billion, said on March 31 it repaid $100 million in TARP funds.

* IberiaBank (IBKC.O: Quote, Profile, Research), based in Louisiana, with total assets of more than $5 billion, said on March 31 it repaid $90 million.