Park Sterling (PSTB) in Charlotte, N.C., has exited the Treasury Department's Small Business Lending Fund.
The $2 billion-asset company said Tuesday that it had fully redeemed the $20.5 million in preferred shares issued through the program. Park Sterling funded the redemption with a payment from its bank.
"This redemption simplifies our capital structure, reduces our overall funding costs and is further evidence of our strong financial position," James Cherry, Park Sterling's chief executive, said in a press release.
The SBLF was created in 2010 to provide money to community banks with less than $10 billion in assets in order to spur lending to small businesses. The fund invested $3.9 billion in 281 banks. As of June 1, 15 banks with collective investment of more than $162 million have fully exited the SBLF, and 14 have partially redeemed their shares, the Treasury said in its latest report on the program.
Park Sterling issued its SBLF stock in October 2012 in connection with its $83 million purchase of Citizens South Banking in Gastonia, N.C.