Washington Banking has repaid $26.6 million in Troubled Asset Relief Program (TARP) funds to the U.S. Department of Treasury, Reuters reports. The Washington-based lender has redeemed all 26,380 preferred shares issued to the Treasury under the TARP.
The move will reduce the lender’s net income available to common shareholders by $1 million in the first quarter of 2011. The holding company for Whidbey Island Bank has also issued a warrant to the Treasury to buy 492,146 common shares at an exercise price of $8.04 per share and intends to negotiate for the repurchase of the warrant.
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