After spending the second half of last year exchanging its long-term expansion plans for extra capital, Boston Private Financial Holdings Inc. announced it received approval from the Treasury Department to begin repaying the $154 million in outstanding Series C preferred stock that was issued to the Treasury as part of its Capital Purchase Program.

The redemption of $50 million of preferred stock was completed Wednesday. The company said that this redemption will result in annual savings of $2.5 million, or $0.04 per share, due to the elimination of the associated preferred dividends. However, a one-time, non-cash, after-tax reduction in earnings per share of $0.04 will be incurred in the company’s first quarter earnings.

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