Taylor Capital Group (TAYC) in Chicago is buying back its outstanding Troubled Asset Relief Program shares as it waits to close its sale to MB Financial (MBFI).

The $6 billion-asset company said Friday that it bought back a portion of its Tarp from third-party investors at a face value of about $11 million. Taylor also said it plans to redeem $47.7 million of shares on Dec. 2, using cash for both buybacks.

Following the two transactions, Taylor would have about $20 million of Tarp outstanding. It received $104.8 million through the program in November 2008, and the Treasury Department auctioned the shares last year. Taylor paid $9.8 million to cancel its Tarp warrant last year, and bought back $26 million of shares in July.

In July, Taylor agreed to sell itself to MB Financial, also in Chicago, for about $680 million.

Taylor's third-quarter earnings fell 15% from a year earlier, to $14.2 million, after it recorded about $2 million of merger-related expenses.

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