First Resource Bank in Exton, Pa., has redeemed its remaining preferred shares tied to the Small Business Lending Fund.
The $208 million-asset bank redeemed $1.3 million of shares, according to a news release Tuesday, a day after the transaction closed. It had redeemed $3.8 million of shares in November. It issued all of its preferred shares to the Treasury Department in September 2011.
About a year ago First Resource's board decided to exit the SBLF in advance of a dividend-rate increase to 9% from 1% set to take effect this month, Chief Executive Glenn Marshall said in the release. It will benefit "from the simplified, more efficient capital structure now in place," he said.
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First Resource Bank in Exton, Pa., has received federal regulatory approval to exit the Small Business Lending Fund program.
February 4 -
A fifth of the financial institutions that participated in the Small Business Lending Fund have fully left the program and an increasing number of banks are joining them before the dividend rate jumps to 9% next year.
July 22 -
First Resource Bank in Exton, Pa., plans to raise $6 million through a combination of common stock and subordinated debt to raise funds to redeem most of its Small Business Lending Fund preferred shares.
June 2