Two community banks have repaid the Troubled Asset Relief Program.
Virginia Commerce Bancorp (VCBI) in Arlington paid $71.3 million from retained earnings and liquidity to redeem all of its preferred shares, the $3 billion-asset company said Tuesday. The payment included $71 million in liquidation value of the stock and roughly $256,000 in accrued and unpaid dividends for the current quarter.
Virginia Commerce had planned on beginning its repayment in June but
The repurchase will cut about $5.5 million annually in cash dividends on preferred stock and related expenses, the company said. Virginia Commerce will accelerate an unaccreted discount on its books that had been tied to the Tarp shares; the move is expected to reduce net income available to common shareholders by roughly $1.9 million, or 6 cents per common share, in the fourth quarter.
Virginia Commerce reported in October third-quarter profit of $7.1 million, up more than 36% from a year earlier.
The company now plans to negotiate the repurchases of Treasury’s warrant to purchase almost 2.7 million of its shares. Virginia Commerce received $71 million in December 2008.
Late last year the $2.9 billion-asset company