Charlottesville-based StellarOne Corp. has repaid the federal government for funds invested in the banking company three years ago through the Troubled Asset Relief Program (TARP).
The company, which has more than $3 billion in assets, paid $22.5 million to redeem 22,500 shares of preferred stock sold to the U.S. Department of the Treasury in December 2008.
The shares were sold to the government under the TARP Capital Purchase Program, set up to boost the capital position of banks nationwide during the 2008-09 financial crisis.
O.R. Barham Jr., the president and CEO of StellarOne, said the preferred stock was redeemed without issuing common stock or incurring debt.
He said the move was good news for the company’s shareholders and employees because StellarOne would no longer have to pay a 5 percent dividend on the preferred stock held by the government and the company would be relieved of some additional regulatory burdens.
StellarOne is the parent company of StellarOne Bank, a community bank with 54 branches in New River Valley, Roanoke Valley, Shenandoah Valley, Central Virginia and North Central Virginia.
There are no comments for this entry