Banner Corp. (BANR) in Walla Walla, Wash., will buy back preferred shares from investors who purchased them from the Treasury Department in March.
The $4.2 billion-asset company plans to repurchase the roughly 30,000 shares in December for about $30.2 million, Banner said Wednesday. The Treasury acquired the shares through its Troubled Asset Relief Program and sold them through a modified Dutch auction as part of its ongoing effort to wind down Tarp. Banner had previously repurchased from investors the other roughly 94,000 preferred shares that it had issued under Tarp.
"We believe this final redemption is further indication of Banner's continued operating improvement, financial strength and appropriate capital management," Mark J. Grescovich, president and chief executive, said in a news release. "Our capital ratios following the redemption will continue to exceed the requirements of our regulators and the standards for well-capitalized banks. We are pleased with the work we have done to strengthen our asset quality metrics, operating results, and profitability trends so that we can comfortably redeem these preferred shares."
Banner had received $124 million in November 2008 under Tarp.