Community Business Bank in West Sacramento, Calif., has finally put the Troubled Asset Relief Program in the past.
The $260 million-asset bank said in a press release Tuesday that it redeemed all $4.1 million of preferred stock that it had issued to the Treasury Department in 2009. The shares, which have been held by private investors since 2012, were redeemed at a 10% discount.
Community Business Bank funded the redemption with retained earnings from the past three years and the benefit of exercising expired stock options last year.
"Although the result is a reduction in our capital levels, the bank's ratios remain well above the minimum levels to be considered a well-capitalized institution," John DiMichele, the bank's chief executive, said in the release. "These ratios will continue to be strengthened through the posting of strong earnings and having no nonperforming assets on the balance sheet over the last three years."