Severn Bancorp in Annapolis, Md., has redeemed its last shares tied to the Troubled Asset Relief Program.
The $794 million-asset company said in a press release Thursday that it paid $13.4 million to private investors to redeem the final 13,393 outstanding shares of preferred stock associated with Tarp. The shares carried a 9% dividend rate.
Severn originally sold 23,393 shares to the Treasury Department in 2008. The company in May paid private investors $10 million to redeem 10,000 shares.
"This will reduce our cost of funds and further add to the financial strength of the company," Alan Hyatt, Severn's president and chief executive, said in the release. "Our capital ratios after the redemption exceed requirements for well-capitalized banks, leaving Severn well poised for further growth."
