Two River Bancorp in Tinton Falls, N.J., has received regulatory approval to redeem half of the preferred stock it issued under the Small Business Lending Fund program.
The $775 million-asset company said in a press release Friday that it plans to redeem 6,000 shares, worth $6 million, issued to the Treasury Department in August 2011.
The SBLF program provided Tier 1 capital to banks with less than $10 billion in assets in an effort to encourage small-business lending.
"We continue to deliver on our long-term capital management strategy of exiting SBLF in a deliberate and timely manner," William Moss, the company's president and chief executive, said in the release. "We will repay 50% of the total with no dilution to our current shareholder base and without any detriment to our growth plans."
Two River plans to redeem its remaining SBLF stock before the program's planned dividend increase in 2016.