Farmers Capital Bank to redeem final third of series A preferred stock

By Toni Weeks

San Luis Obispo, Calif., May 5 – Farmers Capital Bank Corp. said its request to repurchase the final 10,000 shares of its outstanding series A preferred stock has been approved by the Federal Reserve Bank of St. Louis, according to a press release.

The company will redeem, on a pro-rata basis, the preferreds at the stated liquidation value of $1,000 per share, plus any accrued dividends. The total redemption amount will be $10 million plus accrued dividends at 9% per share.

The timing of the repurchase has yet to be decided, but the redemption is expected to occur during the second quarter of 2015, the press release said.

Farmers Capital originally issued 30,000 shares of its series A preferred stock in 2009. The company repurchased 10,000 of those shares on May 15, 2014 and another 10,000 shares on Dec. 1, as previously noted.

“We are pleased to be able to redeem the final portion of our outstanding preferred stock,” president and chief executive officer Lloyd C. Hillard, Jr. 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 U.S. Treasury’s Capital Purchase Program.”

No additional debt or equity was issued in connection with the previous redemptions, and none will be issued in connection with the current redemption, the release said.

Farmers Capital is a bank holding company based in Frankfort, Ky.

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