First Resource Bank in Exton, Pa., has redeemed its remaining preferred shares tied to the Small Business Lending Fund.
The $208 million-asset bank redeemed $1.3 million of shares, according to a news release Tuesday, a day after the transaction closed. It had redeemed $3.8 million of shares in November. It issued all of its preferred shares to the Treasury Department in September 2011.
About a year ago First Resource's board decided to exit the SBLF in advance of a dividend-rate increase to 9% from 1% set to take effect this month, Chief Executive Glenn Marshall said in the release. It will benefit "from the simplified, more efficient capital structure now in place," he said.