Fidelity Southern Corp. (LION) in Atlanta has redeemed the entirety of the shares it issued to the Troubled Asset Relief Program along with about a third of trust-preferred securities.
The bank redeemed $48.2 million in Tarp shares and $20.5 million in trust-preferred securities using the proceeds from a recent capital raise, Fidelity Chief Financial Officer Steve Brolly told American Banker. The Treasury Department retains the Tarp warrant.
Fidelity still has about $44.5 million in trust-preferreds on its balance sheet, Brolly said. The company opted to pay off the most expensive ones, which carried an 11% dividend, first. "The rest are very affordable," he said.
The redemptions will provide Fidelity with yearly after-tax savings of about $5.8 million, according to the company's Tuesday press release.
Fidelity, a $2.7 billion-asset company, has 32 offices in Georgia and one branch in Florida.