AmeriServ Financial in Johnstown, Pa., and Provident Bancorp in Amesbury, Mass., are the latest community banks to disclose plans to exit the Small Business Lending Fund.
The $1.1 billion-asset AmeriServ said in a press release Monday that it will redeem $21 million in outstanding preferred stock it issued the Treasury Department as part of the SBLF. AmeriServ completed a private placement of nearly $7.7 million in subordinated debt — with a 6.5% fixed interest rate and a December 2025 maturity date — to help pay for the move.
The $699 million-asset Provident said in a separate release that it redeemed all of its 17,145 shares of preferred stock that it issued to the Treasury as part of its SBLF participation. Provident paid about $17.2 million to redeem the shares and address accrued, but unpaid, dividends.