MB Financial Inc. in Chicago has repurchased $196 million of preferred shares issued to the Treasury Department as part of the Troubled Asset Relief Program.
The $9.8 billion-asset company said Wednesday that the repayment will result in a one-time after-tax charge of roughly $1.2 million in the first quarter. MB Financial used cash on hand to complete the repayment without raising capital or long-term debt. The company received its Tarp funds in December 2008.
MB Financial also said on Wednesday that it recently entered into a $35 million line-of-credit agreement with a correspondent bank to supplement cash at the holding company.
The bank now plans to enter into negotiations to buy back a warrant held by the Treasury Department for roughly 506,000 shares.
