Thursday, November 10, 2011

Citizens South repurchases warrant from Treasury

Citizens South Banking Corp. announced Thursday that it has repurchased a warrant to buy common stock issued to the U.S. Treasury as part of the Troubled Asset Relief Program in December 2008.

In September, the Gastonia-based bank repaid the Treasury the $20.5 million it received in exchange for preferred shares. Warrants are commonly issued as part of preferred stock sales as a sweetener.

The Treasury had received a right to buy 428,870 shares at a price of $7.17. In 2008, Citizens South stock had traded above that price, but it steadily declined. It was at just under $4 on Thursday afternoon.

The bank repurchased the warrant for $225,157.