Dallas-based Veritex Holdings Inc. on Aug. 8 redeemed all 24,500 shares of its senior noncumulative perpetual preferred stock series D for roughly $24.7 million.
The preferred shares were issued to the U.S. Department of the Treasury in September 2011 in connection with Sovereign Bancshares Inc.'s participation in the Small Business Lending Fund program. Veritex completed its acquisition of Sovereign on Aug. 1; each Sovereign senior noncumulative perpetual preferred share series C was converted into one Veritex SBLF preferred share.
Veritex's primary federal regulator approved the redemption, which was funded with Veritex's surplus capital. The redemption terminates the company's participation in the SBLF program.