Citizens First marks 2nd partial repayment of TARP.
M2 EQUITYBITES-February 14, 2013-Citizens First marks 2nd partial repayment of TARP(C)2013 M2 COMMUNICATIONS http://www.m2.com
14 February 2013 -- Citizens First Corp. (NASDAQ: CZFC) reported it repurchased from the United States Department of the Treasury an additional 94 shares of the original 250 shares of the series A Fixed Rate Cumulate Perpetual preferred stock that the company had issued to the Treasury in 2008 under the TARP Capital Purchase Program of the Emergency Economic Stabilization Act of 2008.
The company previously repurchased 63 shares in February 2011.
The company paid USD3.3m, which was 100% of par value, to repurchase the preferred shares along with the accrued dividend for the shares repurchased. As a result of the repurchase, the company will recognize approximately USD21,000 of unaccreted discount on the repurchased stock as of the date of the repurchase. This repurchase will result in an annual reduction of approximately USD165,000 of the associated preferred dividends. The company funded the repurchase with a loan from another bank, which it expects will be repaid from Bank earnings.
Following the repurchase, the Treasury will continue to own USD3.3m of the company's series A preferred stock, as well as a warrant to purchase 254,218 shares of the company's common stock at a per share exercise price of USD5.18. The company will continue to pay dividends on the remaining 93 shares of series A preferred stock until the company completes its plan to repurchase all of the remaining shares of series A preferred stock and related warrant, subject to regulatory approval. "Based on the two partial repayments, we anticipate exiting the TARP Capital Purchase Program by the end of 2013," said Todd Kanipe, president & CEO of Citizens First.
Citizens First Corp. is a bank holding company headquartered in Bowling Green, Kentucky and established in 1999. The company has branch offices located in Barren, Hart, Simpson and Warren Counties in Kentucky.
USD 1 = 0.64378 GBP
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|Date:||Feb 14, 2013|
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