Georgia’s third-largest banking company has permission to redeem nearly $200 million in preferred stock it issued as part of the federal Troubled Asset Relief Program, or TARP.
United Community Banks, Inc. received regulatory approval to redeem all of its $196.8 million in preferred stock. $180 million of that is Series B preferred stock that is part of the TARP program, and was remarketed by Treasury earlier this year. The rest is Series A and Series D preferred stock. UCBI will redeem its stock without issuing additional common stock.
The company expects the redemption process to be over by mid-January.
The banking company also announced the Federal Deposit Insurance Corporation and Georgia Department of Banking and Finance terminated their memorandum of understanding, which gives UCBI more leeway in its operations. Another memorandum of understanding, with the Federal Reserve Bank of Atlanta, is expected to be terminated soon, the banking company said in a statement.
“We are very pleased with these developments and excited about our opportunities as we turn the calendar to 2014,” president and CEO Jimmy Tallent said in a statement.
UCBI, headquartered in Blairsville, has $7.2 billion in assets and 102 branches in Georgia, Tennessee and the Carolinas.
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