Pacific City Financial (PFCF) in Los Angeles redeemed more than half the preferred stock it issued to the Treasury Department under the Troubled Asset Relief Program.

Pacific City said Thursday that it redeemed $8.7 million of the $16.2 million in outstanding stock as part of a Treasury auction. The shares were redeemed at a 2.9% discount and financed entirely with the company's earnings.

The Treasury's remaining stake in the company, along with $2 million in unpaid dividends and interest, was auctioned to private investors.

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