Carolina Alliance Bank in Spartanburg, S.C., has exited the Small Business Lending Fund program.

The $609 million-asset bank redeemed about $5 million of preferred stock that it issued to the U.S. Treasury Department in August 2011 as part of the program. The redemption amount included accrued and unpaid dividends.

The redemption was paid for using funds on hand. Carolina Alliance will remain well capitalized following the transaction, Chief Executive John Poole said in a news release.

"During the time we participated in the SBLF, our assets continued to grow and the capital provided by the SBLF program augmented our capital position to support the growth," Poole said.

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