Citizens First Corp. in Bowling Green, Ky., said Thursday that it has agreed to repay part of its outstanding debt under the Troubled Asset Relief Program.

The $334.3 million-asset company reached a "letter agreement" with the Treasury Department on Feb. 16 to buy back 25% of the preferred stock it issued to the agency as part of the Capital Purchase Program.

Citizens First paid $2.2 million for 63 of the 250 shares.

As a result of the purchase, the company will recognize $50,000 of unaccreted discount on the stock as of the date of purchase.

It will also reduce its annual dividend payments, by $111,000.

The company said in a press release that "capital at the bank remains unchanged following this transaction."

The Treasury will continue to own $6.6 million of the company's preferred stock; it has a warrant to buy 254,218 shares of common stock at an initial exercise price of $5.18.

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