Synovus Financial (SNV) in Columbus, Ga., has redeemed its Troubled Asset Relief Program shares after raising cash in two stock offerings.
Synovus repaid the Treasury Department the $968 million it received through the program in December 2008, it announced Friday. The $26.6 billion-asset company funded the redemption by selling $185 million of common stock and $130 million worth of preferred shares, two offerings that recently closed. It also used $680 million that it received from Synovus Bank, its subsidiary.
The Treasury still owns warrants to purchase 15.5 million shares of Synovus common stock at $9.36 a share. The company still has to decide whether it will seek to buy back the warrants, it said last week when it announced plans to redeem its Tarp shares.
Treasury's stake in Synovus had been the largest of the agency's remaining bank holdings. Popular (BPOP) in San Juan, Puerto Rico, now has the largest outstanding Tarp balance, at $935 million.
The dividend rate Synovus paid on its Tarp shares would have jumped to 9% from 5% in December, the fifth anniversary of Treasury's investment.
"The events of the past week are huge for our company, including three ratings-agency upgrades, two successful capital offerings and now the exit from Tarp," Kessel Stelling, Synovus' chairman and chief executive, said in the press release. "Our company is stronger, our team is energized, and we can now intensify our focus on our customers."
Last week Synovus announced a second-quarter profit of $30.7 million, 24% higher than the second quarter of 2012.