First Citizens Banc Corp (FCZA) in Sandusky, Ohio, plans to raise up to $25 million to redeem shares it originally issued as part of the Troubled Asset Relief Program.
The $1.1 billion-asset company disclosed in a regulatory filing last week that it will sell up to 1 million depositary shares at $25 each. Each share represents a 2.5% ownership interest in the company's preferred stock. The amount of interest First Citizens will pay on the dividends was not yet included in the filing.
First Citizens plan to use proceeds from the sale to buy back Tarp shares from investors who bought them from the Treasury Department in a July 2012 auction. First Citizens accepted $23.2 million from Tarp in January 2009.