Community West Bancshares, parent company of Community West Bank, announced Tuesday, Nov. 17, 2015, that on Nov. 2, 2015, it redeemed the remaining $5,574,000 of its 9 percent cumulative perpetual preferred stock, series A.

As previously disclosed, the company finalized a $10 million line at a rate of one-month Libor plus 3.75 percent to assist in paying for this final redemption and use for other future corporate purposes. 

“We are pleased to be able to announce this final redemption,” said Martin Plourd, president and chief executive officer. “Our capital ratios following the redemption will continue to exceed the requirements of our regulators and the standards for well-capitalized banks. We have worked diligently to strengthen our asset quality metrics, operating results and profitability trends so that we can comfortably redeem these preferred shares.” 

The company originally issued 15,600 shares of fixed rate cumulative perpetual stock, series A, to Treasury under the Troubled Asset Relief Program (TARP) Capital Purchase Program.

In December 2012, Treasury auctioned the preferred shares to private investors. The purchase will not affect the company’s book value per common share, which was $7.36 at Sept. 30, 2015.

The Bank will continue to be considered well-capitalized under all regulatory guidelines. 

— Sally Villaluz Ghormley represents Community West Bancshares.