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Enterprise Financial Repurchases Preferred Stock Issued Under TARP
Nov 12 - Enterprise Financial Services Corp, St. Louis, (Nasdaq:EFSC) has repurchased the $35 million in preferred stock it issued to the U.S. Treasury under the Troubled Asset Relief Program Capital Purchase Program. The preferred shares were repurchased at their full face value. In addition, the company paid $0.4 million in accrued and unpaid dividends on the shares.
"We agreed to participate in the Capital Purchase Program in late 2008 as an efficient means to supplement our capital strength and support continued growth during a time of economic uncertainty," said Peter Benoist, president and CEO. "Since then, we've accomplished those objectives, growing our assets by almost 30 percent and completing four FDIC-assisted acquisitions. Now, with the economy showing signs of recovery and given our stronger capital and liquidity positions, we decided the time was right to repurchase the preferred stock in full."
In connection with the repurchase, the company will recognize a $0.9 million, or approximately 3 cents per share, noncash acceleration of discount on the preferred stock that will reduce net income available for common shareholders in the fourth quarter. The company also intends to repurchase the 324,074 common stock warrants that it issued to the U.S. Treasury as part of its participation in the Capital Purchase Program.
Enterprise Financial operates commercial banking and wealth management businesses in metropolitan St. Louis, Kansas City and Phoenix. Enterprise is primarily focused on serving the needs of privately held businesses, their owner families, executives and professionals.