LNB Bancorp (LNBB) in Lorain, Ohio, has sold $3.7 million of stock as part of a plan to exit the Troubled Asset Relief Program.

The $1.2 billion-asset company said Monday that it sold the stock through a private placement to directors and third-party investors. LNB sold about 367,000 shares, pricing the stock at $9.91 a share for the investors and $10.30 a share for the directors. LNB's stock closed Monday at $10.41 a share.

LNB plans to use the money, along with a $3 million line of credit from an unnamed financial institution, to buy back its remaining 9,147 shares of Tarp stock.

LNB received $25.2 million through Tarp in December 2008; the Treasury Department auctioned the shares last year for about $870 each. LNB has been retiring portions of the shares this year through a series of transactions.

"We are excited that we are in the final steps of retiring the Series B preferred stock," LNB Chief Executive Daniel Klimas said in a press release. "When completed, we expect that these transactions will be accretive to both tangible book value per share and earnings per share."

LNB expects the buyback to reduce its 2014 dividend expenses by $777,500.

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