HUNTINGTON, W.Va., Feb. 13, 2012 /PRNewswire/ -- PREMIER FINANCIAL BANCORP, INC. (PREMIER), (NASDAQ/GM-PFBI), a $1.1 billion bank holding company, with banking locations in Kentucky, Ohio, West Virginia, Virginia, Washington DC, and Maryland announced that it received approval from the Federal Reserve Bank of Richmond ("FRB") and the Federal Reserve Board of Governors ("Board of Governors") to pay the regularly scheduled quarterly dividend due February 15, 2012 on Premier's Series A Preferred Stock owned by the U.S. Treasury under the Troubled Asset Relief Program ("TARP").
In a letter dated February 13, 2012, the FRB and Board of Governors approved Premier's January 19, 2012 request to pay the current $278,150 dividend due February 15, 2012.
President and CEO Robert W. Walker commented, "We are pleased to once again receive the FRB's approval to pay our obligation under the TARP program. We are hopeful that as the FRB continues to analyze our company they will determine that there is no longer any need for the July 29, 2010 written agreement and it can be terminated."
On July 29, 2010, Consolidated Bank and Trust Company ("CB&T" or "the Bank"), a wholly owned subsidiary of Premier, the FRB and the State Corporation Commission Bureau of Financial Institutions ("Virginia Bureau") entered into a written agreement ("Written Agreement") requiring CB&T to perform certain actions primarily designed to improve the credit quality of the Bank. Premier was also named as a party to the Written Agreement to ensure that the Bank complied with the Written Agreement. CB&T was merged into Premier Bank, Inc., a wholly owned subsidiary of Premier, on April 8, 2011. However, any provisions specific to Premier currently remain in effect.In addition to ensuring the Bank complied with provisions of the Written Agreement, Premier is also specifically subject to a provision requiring prior written approval of the FRB and the Director of the Division of Banking Supervision and Regulation of the Board of Governors before declaring or paying any dividends, including the dividends payable to the U.S. Treasury on Premier's Series A Preferred Stock.