VantageSouth Bancshares (VSB) in Raleigh, N.C., has redeemed all outstanding shares issued to the Treasury Department under the Troubled Asset Relief Program.

The $2.2 billion-asset company said in a press release Wednesday that it paid $42.8 million to redeem preferred stock issued to the Treasury in January 2009. VantageSouth was among the top 10 institutions with the biggest remaining amounts of outstanding Tarp debt, according to the Treasury.

VantageSouth funded the repurchase with a $47 million private placement. The redemption was part of a merger agreement with Yadkin Financial (YDKN) in Elkin, N.C. Yadkin agreed in January to pay $299 million in stock for VantageSouth in a deal that is expected to close by mid-2014.

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