MetroCorp buys back $43.74 million preferreds through Treasury auction

By Angela McDaniels

Tacoma, Wash., June 28 - MetroCorp Bancshares, Inc. repurchased $43.74 million of its series A fixed-rate cumulative perpetual preferred stock, according to a company news release.

The company paid $981.17 per $1,000 of liquidation value. It used the proceeds of a May 21 follow-on public offering of common stock to fund the repurchase.

The company sold $45 million of the preferreds to the Department of the Treasury under the Capital Purchase Program of the Troubled Asset Relief Program.

The Treasury offered the preferreds to the public through an auction that ended Wednesday. The minimum bid price was $946.00 per preferred.

The dividend rate is currently 5%. It will increase to 9% on Feb. 15, 2014.

MetroCorp provides commercial and consumer banking services through MetroBank, NA and Metro United Bank. It is based in Houston.

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