Cathay General Bancorp (CATY) in Los Angeles has finished buying back the shares it issued to the Treasury Department under the Troubled Asset Relief Program.
The $10.6 billion-asset company redeemed $129 million of preferred stock plus accrued dividends in its final Tarp payment, according to a Monday press release. Cathay received a total of $258 million through the Tarp program in December 2008. It has yet to repurchase the warrant it issued to the Treasury, according to Chief Financial Officer Heng Chen.
"This redemption marks a key milestone in our progress," Cathay Chairman, President and Chief Executive Dunson Cheng said in the release. "We are very pleased that our retained earnings and liquidity have enabled us to complete this repayment, which continues to demonstrate our financial strength."
J.P Morgan Securities served as a capital advisor to the company on its capital plan submission and Tarp repayment application.