Carolina Bank Holdings (CLBH) in Greensboro, N.C., has bought back some of the preferred stock it issued through the Troubled Asset Relief Program.
The $669 million-asset company said Wednesday that it redeemed $5 million of shares from individual investors on Aug. 20. The company issued $16 million of shares to the Treasury Department in January 2009. The Treasury auctioned the shares this February.
The dividend on the company' remaining Tarp shares will rise to 9% from 5% in January, the fifth anniversary of issuance.
"We are pleased to have completed the repurchase of $5 million of our preferred stock, which should be [12 cents] accretive to our diluted earnings per common share in 2014 based on current interest rates," Robert Braswell, Carolina Bank Holdings' president and chief executive, said in a press release. "The repurchase was made possible by our improved earnings, capital, and asset quality over the past several years."
Carolina Bank paid the Treasury $1.8 million to redeem its Tarp warrant in April.