WSFS Financial (WSFS) in Wilmington, Del., has repurchased preferred shares it issued the Troubled Asset Relief Program.
The $4.4 billion-asset company said Thursday that it repurchased $32.6 million of preferred stock held by private investors on Aug. 26.
WSFS issued $52.6 million of stock to the Treasury Department through the Tarp in January 2009. The Treasury auctioned those shares in March 2012. WSFS bought back $20 million of Tarp stock earlier this year.
Banks have been working to exit the Tarp before the interest rate on the shares jumps to 9% from 5% at the five-year anniversary of the shares' issuance.
Last year, WSFS Chief Executive Mark Turner said he hoped to exit Tarp in a "shareholder friendly way" before the rate increased. On Thursday, the company said it expects the redemption to immediately add to its earnings.