Colony Bankcorp in Fitzgerald, Ga., has redeemed $3.6 million in perpetual preferred stock associated with the Troubled Asset Relief Program.
The $1.1 billion-asset company said in a press release Wednesday that it paid nearly $3.4 million to redeem 3,661 shares of preferred stock. The move will be immediately accretive to earnings.
Private investors still hold 14,360 shares of Colony's Tarp-related preferred stock. The company said that it plans to exercise its option to redeem those shares later this year.
"We are not part of the Tarp program today as the government auctioned off the preferred stock back in 2013," Terry Hester, Colony's chief financial officer, told American Banker. "So it is now held by various investors."