Valley Financial (VYFC) in Roanoke, Va., has exited the Troubled Asset Relief Program with the repurchase of a warrant the company issued to the Treasury Department in 2008.
Valley Financial paid $1.5 million for a warrant to purchase 344,742 shares of common stock at $6.97 per share a 38% discount.
"We are pleased to have completed the repurchase of the warrant from the Treasury," President and Chief Executive Ellis Gutshall said in a press release Wednesday. "To exit Tarp completely without diluting our current shareholders was a key strategic objective and our ability to do so reflects the financial strength of our company."
In October, Valley Financial redeemed the remaining 9.6 million shares of preferred stock held by the Treasury with proceeds from an $11 million debt issuance to an unnamed accredited investor. The company paid the Treasury $9.6 million in principal and $81,500 in accrued dividends.
Valley Financial has nine branches in Virginia and $806 million of assets.