First Priority Financial in Malvern, Pa., has redeemed $6 million in preferred stock associated with the Troubled Asset Relief Program.
First Priority, the parent of the $508 million-asset First Priority Bank, said in a press release Monday that it bought back about 6,000 shares from unnamed investors that had purchased the stock from the Treasury Department. Following the transaction, roughly 3,000 shares of preferred stock will still be outstanding.
First Priority raised funds for the redemption in November through a private offering of subordinated debt.
The redeemed shares represent nearly two-thirds of the $9.4 million in outstanding fixed-rate cumulative perpetual preferred stock that the company issued in 2009 as part of the Tarp.