Mid Penn Bancorp Inc. said today it has paid back $10 million it received in 2008 from the U.S. Treasury's Troubled Asset Relief Program.
Under the program, banks issued preferred stock to the Treasury in exchange for the funding. The parent company of Mid Penn Bank said it bought back the stock for its face value plus $59,722.22 in accrued unpaid dividends.
“We are pleased and proud to make this announcement and we believe that our full repayment to TARP validates the strength and stability of Mid Penn,” President and CEO Rory G. Ritrievi said in a statement.
Mid Penn was one of a half dozen midstate-based banks to receive funds under TARP’s Capital Purchase Program, part of the federal government’s massive efforts to stabilize the U.S. financial system after the collapse of the firm Lehman Brothers.
The other local banks have already repaid their loans, in some cases using money from the Small Business Lending Fund, another Treasury program. Mid Penn did not receive lending fund money, withdrawing its application after receiving notice it would not be approved.
The Treasury still has a warrant entitling it to buy up to 73,099 shares of Mid Penn common stock. The company said it intends to repurchase the warrant, but did not say when.