Heritage Commerce (HTBK) in San Jose, Calif., plans to redeem $9 million of debt and exit the Troubled Asset Relief Program.

The $1.4 billion-asset company said Friday that it will redeem two floating-rate debt issuances, it said in a regulatory filing. The company said it will redeem $5 million worth of debt on July 31 and $4 million on Sept. 26.

Heritage will take a $169,000 charge in the third quarter for fees on the redemption, and it expects the repayment to save it roughly $360,000 a year in interest expense. Heritage will pay for the repayment using funds from its bank.

Separately, Heritage said it paid $140,000 to buy back warrants it issued to the Treasury Department through Tarp. Heritage received $40 million through the program in November 2008, and repurchased its preferred stock in March 2012.

Heritage has seven California branches. The company plans to expand in the counties surrounding San Francisco, Chief Executive Walter Kaczmarek told American Banker last month.

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