A $2.3M weight lifted

C&F Bank's sign at its branch on West Broad Street.

C&F Bank’s sign at its branch on West Broad Street.

Another local bank has cast off the last of its TARP baggage.

C&F Bank and its parent company this week paid $2.3 million to buy back warrants for its common stock from the U.S. Treasury.

The government received the warrants as part of the bank’s participation in the TARP Capital Purchase Program in January 2009. C&F exchanged preferred stock for $20 million in TARP capital and bought its way out that portion of the once-controversial program in April 2012. It was the second local bank to make a large initial exit out of TARP.

Treasury has since held onto the warrants to purchase 167,500 shares of C&F Financial common stock at a price of $17.91 per share. In the end, the two sides agreed on a total buyback price that amounted to $13.75 per share. As the federal government has sought to unwind the last of the TARP program, it has not been uncommon for Treasury to sell common stock warrants back to participant banks at a discount.

C&F’s stock, which trades under the ticker symbol “CFFI,” closed Wednesday at $32.84 per share.

C&F Chief Executive Larry Dillon could not be reached for comment Wednesday.

Dillon said in a prepared statement: “We are especially pleased that we were able to redeem both the TARP Preferred Stock and the Warrant without having to raise additional capital, which would have been dilutive to our shareholders. All of the funds used to complete both of these repurchases were derived from internal sources.”

Most of the eight locally based banks that received TARP capital have fully bought their way out of the program. The government pumped a total of $191 million into those eight institutions during the recession.

Some bought their way out directly, while others such as Midlothian-based Village Bank and EVB, saw their TARP shares sold by Treasury to mystery buyers in an open auction. First Capital bought half of its shares back at such an auction and then earlier this year bought the remaining half from an unknown private buyer to fully exit the program.

Glen Allen-based Essex Bank last month was the latest to buy the last of its preferred stock back from Treasury to the tune of $10.86 million.

C&F Bank's sign at its branch on West Broad Street.

C&F Bank’s sign at its branch on West Broad Street.

Another local bank has cast off the last of its TARP baggage.

C&F Bank and its parent company this week paid $2.3 million to buy back warrants for its common stock from the U.S. Treasury.

The government received the warrants as part of the bank’s participation in the TARP Capital Purchase Program in January 2009. C&F exchanged preferred stock for $20 million in TARP capital and bought its way out that portion of the once-controversial program in April 2012. It was the second local bank to make a large initial exit out of TARP.

Treasury has since held onto the warrants to purchase 167,500 shares of C&F Financial common stock at a price of $17.91 per share. In the end, the two sides agreed on a total buyback price that amounted to $13.75 per share. As the federal government has sought to unwind the last of the TARP program, it has not been uncommon for Treasury to sell common stock warrants back to participant banks at a discount.

C&F’s stock, which trades under the ticker symbol “CFFI,” closed Wednesday at $32.84 per share.

C&F Chief Executive Larry Dillon could not be reached for comment Wednesday.

Dillon said in a prepared statement: “We are especially pleased that we were able to redeem both the TARP Preferred Stock and the Warrant without having to raise additional capital, which would have been dilutive to our shareholders. All of the funds used to complete both of these repurchases were derived from internal sources.”

Most of the eight locally based banks that received TARP capital have fully bought their way out of the program. The government pumped a total of $191 million into those eight institutions during the recession.

Some bought their way out directly, while others such as Midlothian-based Village Bank and EVB, saw their TARP shares sold by Treasury to mystery buyers in an open auction. First Capital bought half of its shares back at such an auction and then earlier this year bought the remaining half from an unknown private buyer to fully exit the program.

Glen Allen-based Essex Bank last month was the latest to buy the last of its preferred stock back from Treasury to the tune of $10.86 million.

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