Annapolis Bancorp Repays 50% of TARP
Annapolis Bancorp, Inc. (NASDAQ: ANNB), parent company of BankAnnapolis, today repaid one-half of its $8.2 million TARP obligation to the U.S. Treasury.
In a transaction approved by the Federal Reserve, its primary regulator, Annapolis Bancorp, Inc. (the “Company”) redeemed 4,076 shares of its Fixed Rate Cumulative Perpetual Preferred Stock, Series A, issued to the U.S. Treasury Department under the TARP Capital Purchase Program in January of 2009, at a redemption price of $4,076,000.
“We are very pleased to take this significant step forward, which was made possible by the strength and consistency of our earnings and substantial improvement in our asset quality,” said Richard M. Lerner, Chairman and CEO of Annapolis Bancorp, Inc. and BankAnnapolis. “Ten consecutive profitable quarters have solidified our capital ratios and positioned us to make this pay down without having to raise additional capital through a potentially dilutive stock offering. If trends continue, we fully expect to meet our goal of paying off the balance of our TARP obligation before the scheduled dividend rate increases from 5% to 9% in January of 2014.”
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