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Treasury money flows into First Community Corp. |
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Monday, 01 December 2008 |
SCBIZ Daily Staff
COLUMBIA -- First Community Corp., parent of First Community Bank of Lexington, has sold $11.4 million in preferred shares to the U.S. Treasury, the company announced last Tuesday.
First Community President and CEO Mike Crapps said the bank continues to be well-capitalized.
“We believe that this program is an attractive source of capital and positions our already strong bank to be even stronger to take advantage of certain opportunities in the marketplace,” Crapps said.
As part of the recapitalization program, the company will pay the government a 5% dividend of $568,000 annually for each of the first five years of the investment and 9% thereafter, unless the company redeems the shares. The government also received 10-year warrants for 195,915 shares of common stock, which gives the Treasury the opportunity to benefit from an increase in the common stock price.
The sale was completed Friday; in its statement, First Citizens said assets for the company were $633.9 million on Sept. 30, and shareholders’ equity was $57 million.
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