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.
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Lakeland Bancorp in Oak Ridge, N.J., has agreed to buy Harmony Bank in Jackson, N.J.
February 18 -
Franklin Financial Network in Franklin, Tenn., plans a debt issuance to pay for its recently completed exit from the Small Business Lending Fund and to fund other activities.
March 30 -
ConnectOne Bancorp in Englewood Cliffs, N.J., has exited the Small Business Lending Fund program.
March 29 -
Roughly 90 banks that participated in the government's lending program still owe money to the Treasury Department and face a massive dividend increase. Many of those could view selling as a better alternative to raising new capital.
March 24
