Annapolis Bancorp (ANNB) in Maryland has repaid its Troubled Asset Relief Program funds in preparation for its sale to F.N.B. Corp (FNB).
The $445 million-asset Annapolis said Wednesday that it has paid the Treasury Department $4.1 million to redeem its preferred stock and complete its exit from Tarp. Annapolis received $8.2 million in January 2009 and repaid half of it in April 2012, it said in the news release.
F.N.B. in Hermitage, Pa., agreed in October to pay $51 million in stock for Annapolis. The two companies said that Annapolis would repay its Tarp funds before the deal's completion, which they expect in April.
"We stated from the outset that our goal was to pay off Tarp before the scheduled dividend rate increases from 5% to 9% in January of 2014," Annapolis Chairman and Chief Executive Richard Lerner said. "Consistent earnings over 14 consecutive profitable quarters have solidified our capital ratios and enabled us to accomplish that goal with just under a year to spare."
The Treasury still holds a warrant to buy up to nearly 300,000 shares of Annapolis' common stock for $4.08 a share. Its stock closed Wednesday at $13 per share.
Annapolis Bancorp is the parent company of BankAnnapolis, which has eight branches in Maryland.