Stewardship Financial in Midland Park, N.J., has issued $16.6 million in subordinated debt and plans to exit the Small Business Lending Fund program.

The $701 million-asset company closed the private placement on Friday, according to a news release.

The holding company for Atlantic Stewardship Bank will use the proceeds to redeem $15 million of preferred stock issued to the Treasury in September 2011 as part of the SBLF program. Stewardship plans to use the remaining proceeds for general corporate purposes.

The subordinated notes yield 6.75% and mature in August 2025.

Sandler O'Neill was the financial adviser on the offering. McCarter & English was the legal counsel.

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