Seven months after it was created through the merger of Nara Bancorp and Center Financial, BBCN (BBCN) Bancorp in Los Angeles has repaid the funds its two predecessor companies received from the Troubled Asset Relief Program.
The $5.1 billion-asset BBCN announced Wednesday that it has fully redeemed the $122 million of preferred shares the companies issued to the Treasury Department in the fourth quarter of 2008. Nara received $67 million in Tarp funds and Center received $55 million.
The company said it would remain very well capitalized even after repaying Tarp with its available cash. It also said that it is negotiating to repurchase its nearly 860,000 warrants held by the Treasury.
The repayment will save the company roughly $1.5 million in quarterly dividend payments to the Treasury.