Elmira Savings Bank (ESBK) in Elmira, N.Y., has redeemed the remaining $3.5 million of preferred stock issued to the Treasury Department through the Small Business Lending Fund.

"We are pleased to redeem these outstanding preferred shares, exiting the SBLF program, and reducing our dividend payments to preferred shareholders," Thomas Carr, Elmira's president and chief operating officer, said in a press release.

The SBLF was formed under the Small Business Jobs Act in 2010 to encourage community banks to lend to small businesses.

The $514 million-asset Elmira originally issued $14 million of preferred stock to the Treasury. It repaid $10.5 million in April 2013.

The Treasury had invested $3.9 billion in 281 banks as of June 30, 2013.

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