First Financial amends agreement to purchase TARP preferreds from EJF

By Marisa Wong

Madison, Wis., May 21 - Following completion of a $20 million sale by the U.S. Treasury of series A fixed-rate cumulative perpetual preferred stock issued by First Financial Service Corp. under the Troubled Asset Relief Program, First Financial amended its agreement with EJF Capital LLC in order to repurchase its preferreds.

Under an agreement dated July 26, 2012, EJF agreed to submit a bid to purchase First Financial's preferreds from the Treasury, and two funds managed by EJF purchased 74% of the preferreds at 54.211% of par at the auction that ended on April 29.

According to an 8-K filing with the Securities and Exchange Commission, the amended agreement allows First Financial to purchase the preferreds from the two EJF funds within 36 months of April 29. The preferreds may be purchased at a price that increases to 51.5 from 46.1 over the 36-month period.

The amendment was completed on May 3.

First Financial is an Elizabethtown, Ky.-based bank.

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