Elmira Savings Bank in New York has repurchased a warrant from the federal government that had been issued as part of the Troubled Asset Relief Program during the financial crisis.
It paid nearly $1.5 million for the warrant, which could have been converted into more than 150,000 shares of the bank's common stock. Elmira issued the warrant to the Treasury Department in December 2008 as part of Tarp's capital purchase program.
The two sides set the price based on the fair market value of the shares, Elmira said.
Previously, Elmira bought back preferred stock it had issued to the Treasury as part of the capital purchase program and the Small Business Lending Fund. With these two transactions, the $562 million-asset bank has ended its participation in both programs.