Community West Bancshares (CWBC) in Goleta, Calif., said it will redeem almost half of its outstanding preferred stock issued under the Troubled Asset Relief Program.

The $539 million-asset company's board approved on Friday the redemption of 7,804 shares of its outstanding Series-A fixed rate cumulative perpetual preferred stock, which represents roughly 50% of the bank's Tarp-related debt.

The shares are being redeemed from third parties that purchased preferred stock from the Treasury Department in December 2012.

The price will be $1,000 per share, "plus any accrued or unpaid dividends that have been earned" up to the redemption date, the bank said in a press release. Regulators will set the date.

Community West's decision was made based on the bank's "continued operating improvement" and capital strength, Chief Executive Martin Plourd said.

The move follows the bank's improvements in management and capital ratios that had been required by federal regulators.

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