Horizon Bancorp in Michigan City, Ind., has exited the Small Business Lending Fund program.

The $2.7 billion-asset company redeemed about $12.5 million of preferred shares, plus accrued dividends, according to a Monday regulatory filing.

Horizon issued the SBLF shares to the Treasury Department in August 2011. The redemption was funded with cash on hand.

Horizon is the latest bank to exit the SBLF program. Other banks are racing to get out while interest rates are still low; the dividend rate on such shares is scheduled to increase to 9% in March from 1%.

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