Firstbank (FBMI) in Alma, Mich., plans to redeem its remaining Troubled Asset Relief Program shares for $17 million.
The $1.5 billion-asset company has received regulatory approval to redeem the shares from investors who bought them in an auction last June, Firstbank said Tuesday. The planned redemption date is June 14.
Firstbank expects the redemption to cost $17 million. It received $33 million through the Treasury Department's program in January 2009. After the planned redemption, Firstbank will have no preferred shares outstanding.
"We are pleased to report our ability to redeem the remaining Preferred Stock outstanding which will occur without the need to issue any new common equity due to our already strong capital and liquidity levels," Thomas Sullivan, Firstbank's president and chief executive, said in a press release. "Our capital ratios following the redemption will continue to exceed the requirements of our regulators and the standards for well-capitalized banks."
Firstbank was one of several banks that bid on their own debt in the Treasury's June Tarp auction, buying nearly $16 million worth of the preferred shares.