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Farmers Capital Bank (FFKT) in Frankfort, Ky., has received regulatory approval to repurchase some of its preferred stock.
March 24 -
Once thought of as cheap capital, Tarp is getting more expensive as the dividend rate jumps from 5% to 9%. Banks that are still in the program could see the increase as one more force pushing them to consider their options.
March 17
Farmers Capital Bank in Frankfort, Ky., will repurchase the rest of its outstanding preferred stock.
The $1.8 billion-asset company said in a press release that it will buy back 10,000 shares of its Series A preferred stock at $1,000 a share, plus any accrued dividends. The total redemption amount will be $10 million, plus accrued dividends at 9% a share. The repurchase is expected to be completed this second quarter.
This will be the final repurchase tied to 30,000 shares of its Series A preferred stock the company issued in 2009 under the Troubled Asset Relief Program.
"We are pleased to be able to redeem the final portion of our outstanding preferred stock," Lloyd Hillard Jr., Farmers Capital's president and chief executive, said in the release. "Repurchasing the preferred shares is a significant milestone for the company and represents full repayment of the shares originally issued through the" Tarp.
Farmers Capital has 36 branches in Kentucky.
