26. SUBSEQUENT EVENT

On January 27, 2016, the Company redeemed all 21,000 preferred stock shares issued under the Small Business Lending Fund of the U.S. Department of the Treasury (SBLF). The Company received approval from the Board of Governors of the Federal Reserve System and the U.S. Department of Treasury to fully redeem the noncumulative perpetual preferred stock that had been issued to the U.S. Department of Treasury on August 11, 2011 in connection with the Company’s participation in the SBLF program. The shares were redeemed at $1,000 per share plus accrued dividends for a total redemption price of approximately $21 million. The redemption was funded from the previously disclosed issuance of $7.65 million of subordinated debt and $13.4 million of cash and securities on hand. Following the redemption, the Company has no preferred shares outstanding. The Company continues to have capital in excess of minimum regulatory requirements and at levels that qualify as “well capitalized” under applicable regulatory guidelines. Under the program, the Company was able to leverage the funds to lend an additional $192 million in loans to small businesses.