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