Independent Bank (ICBP) in Ionia, Mich., has exited the Troubled Asset Relief Program.

The $2.1 billion-asset company said Tuesday that it paid $81 million to redeem its Tarp shares and pay accrued dividends. Independent, which received $72 million from Tarp, raised $89 million last month through a common stock offering.

Independent expects the redemption to save it $4.6 million annually. Last week it said it had resumed paying interest on its trust-preferred stock.

"Our exit from Tarp represents the culmination of a very challenging and eventually rewarding period in the history of our organization," Brad Kessel, the company's president and chief executive, said in a press release. "This is the epitome of a total team effort, reflective of the dedication and commitment of our employees and the support of our shareholders and customers as well as the communities we serve."

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