BOWLING GREEN, Ky., Feb. 17, 2011 /PRNewswire/ -- Citizens First Corporation (the "Company") (Nasdaq: CZFC), the holding company of Citizens First Bank (the "Bank"), announced that on February 16, 2011 it entered into a letter agreement with the United States Department of the Treasury pursuant to which the Company repurchased 63 of the 250 shares of the Series A Fixed Rate Cumulate Perpetual Preferred Stock that the Company had issued to the Treasury on December 19, 2008 under the TARP Capital Purchase Program of the Emergency Economic Stabilization Act of 2008. The Company paid $2.2 million 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 $50,000 of unaccreted discount on the repurchased stock as of the date of the repurchase. This repurchase will result in an annual reduction of approximately $111,000 of the associated preferred dividends. Capital at the Bank remains unchanged following this transaction.
Following the repurchase, the US Treasury will continue to own $6.6 million 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 an initial per share exercise price of $5.18. The Company will continue to pay dividends on the remaining 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.
About Citizens First Corporation
Citizens First Corporation 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.Forward-Looking Statements Certain statements contained in this news release which are not statements of historical fact constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act (the "Act"). In addition, certain statements in future filings by the Company with the Securities and Exchange Commission (the "SEC"), in press releases, and in oral and written statements made by or with the Company's approval which are not statements of historical fact constitute forward-looking statements within the meaning of the Act. Examples of forward-looking statements include, but are not limited to, projections of revenues, income or loss, earnings or loss per share, the payment or non-payment of dividends, capital structure and other financial items; statements of plans and objectives of the Company or the Company's management or Board of Directors; and statements of future economic performance and statements of assumptions underlying such statements. Words such as "believes," "anticipates," "intends," and other similar expressions are intended to identify forward-looking statements but are not the exclusive means of identifying such statements.