SVB Financial Group, the parent company of Silicon Valley Bank, said it had gained federal approval to repay the $235 million in public money it got through the Troubled Asset Relief Program.
SVB Financial raised $300 million through a
private equity offering last month, with an eye toward exiting TARP.
The company, based in Santa Clara, Calif., said
it had paid more than $10 million in dividends to the Treasury Department since
it took government money through TARP's Capital Purchase Program in December
2008.
SVB Financial said that in addition to redeeming the preferred stock held by the Treasury Department, it hopes to repurchase the common stock warrants it issued as part of its TARP deal.
Ken Wilcox, SVB Financial's chief executive officer, said TARP did was it was supposed to for his company, bolstering the capital of a healthy bank so that it could continue making loans in an unstable environment.
"We are proud to say we have actively supported
our clients throughout the downturn as they grew, created jobs and continued to
bring innovations to market," Wilcox said in a press release.
With the economy stabilizing and debt and equity
markets open again to companies like SVB Financial, the time has come to repay
the government aid, he said.
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