Northeast Bancorp (NBN) in Lewiston, Maine, has repurchased the roughly 4,200 preferred shares it issued to the Treasury Department under the Troubled Asset Relief Program.
The $660 million-asset company paid $4.2 million to redeem the shares, including $8,000 in accrued and unpaid dividends, using available cash, Northeast said Wednesday. It expects the repurchase to reduce net income available to common shareholders by roughly $257,000 for the current quarter.
Northeast expects to notify the Treasury Department of its intent to repurchase its warrant for up to 67,958 shares of common stock issued under Tarp. The company received $4 million in December 2008 from Treasury as part of the program.