First Resource Bank in Exton, Pa., has redeemed most of its Small Business Lending Fund preferred shares.
The $200 million-asset bank redeemed $3.8 million shares, representing 75% of its outstanding preferred SBLF stock, according to a Thursday news release. The transaction closed on Tuesday.
The redemption was funded through the issuance of $2 million in common stock and $4 million in subordinated debt. The notes carry a 6.5% rate and are due in September and October 2025.
First Resource originally issued its $5.1 million pool of SBLF shares to the Treasury Department in September 2011.
First Resource did not disclose its timetable for redeeming its remaining $1.3 million of SBLF stock.