Harmony Bank in Jackson, N.J., has exited the Small Business Lending Fund. The $295 million-asset company said in a press release Tuesday that it paid about $3.5 million to redeem roughly 3,500 shares of preferred stock.
The bank had issued the shares to the Treasury Department in September 2011. Harmony said it funded the redemption from existing funds. The bank also said it continues to have capital that exceeds the levels needed to be deemed well-capitalized under current regulatory standards.
The Treasury Department introduced the SBLF in 2010 to provide capital to banks in an effort to boost small-business lending. About 90 banks still held SBLF capital at the end of February.