Two California banks have repaid funds they received from the Treasury Department under the Troubled Asset Relief Program.
Heritage Commerce Corp. in San Jose, Calif., said late Wednesday that it had fully repurchased the $40 million of preferred stock and paid roughly $122,000 in a final dividend without raising additional capital or debt.
The $1.3 billion-asset company said it used available cash and that after the repayment, its leverage ratio was 12.2%.
Heritage Commerce will now review repurchasing a warrant to purchase more than 462,000 shares of common stock at $12.96 per share that it also issued to the Treasury Department in November 2008.
In a separate news release on Wednesday, Beach Business Bank in Manhattan Beach, Calif., said that it had paid $1.5 million to repurchase 1,500 of the remaining 3,000 preferred shares the Treasury Department still holds.
The $305 million-asset company originally issued 6,000 preferred shares in January 2009 and has made two previous repayments. First PacTrust Bancorp in Chula Vista, Calif., will repay the remaining amount when it completes its acquisition of Beach Business Bank. That deal is expected to close in the second quarter.
