UPDATE 1-Valley National says to repay remaining TARP funds
* Says to repay remaining $100.7 mln by Dec 23
* To redeem final pref shares held by US Treasury
* Says capital position will continue to give flexibility
* Shares rise 1 pct
Dec 22 (Reuters) - Valley National Bancorp (VLY.N) said it received approval from the U.S. Treasury to repay the remaining $100.7 million it received under the Troubled Asset Relief Program (TARP).
"We believe our capital position after the repayment will continue to provide us excellent flexibility in the management of our balance sheet," said the regional bank holding company, which raised $135 million through two equity offerings in 2009.
The company will redeem the final 100,000 shares of its series A preferred shares outstanding and held by the Treasury under the Capital Purchase Program on Dec. 23, it said in a statement.
The preferred stock repurchased currently has a market value of $97.8 million and the company will record a reduction in retained earnings of $2.2 million from the deal, it said.
Valley, which had received $300 million in funds from the Treasury in November 2008, said it issued a warrant to purchase about 2.4 million shares at $18.66 to the Treasury which is still held by them.
Valley said it will determine within 15 days whether to exercise its option to repurchase the warrant at fair market value.
Shares of the Wayne, New Jersey-based company were up about 1 percent at $13.93 in morning trade Tuesday on the New York Stock Exchange. (Reporting by Archana Shankar in Bangalore; Editing by Gopakumar Warrier)
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