First Community Financial buys back $6.3 million of TARP preferreds

By Susanna Moon

Chicago, Dec. 9 – First Community Financial Partners, Inc. said it repurchased all of its remaining outstanding shares of fixed-rate cumulative perpetual preferred stock, series B and series C.

The two series of preferreds were issued to the U.S. Department of the Treasury under the Troubled Asset Relief Program (TARP), according to a company press release.

The purchase price was $6.3 million for 5,176 shares of series B preferreds and 1,100 shares of series C preferreds, with a liquidation preference of $1,000 per share.

The TARP preferreds were repurchased from third-party investors, with funding from First Community’s 7% subordinated debt raise, which closed on Oct. 31.

With the dividend rate on the series B preferreds rising to 9% from 5% in 2015, the repurchase will result in an annual savings of about $301,000, the company said.

“The retirement of the preferred stock eliminates the remnants of TARP,” Roy C. Thygesen, the company’s chief executive officer, said in the press release.

“We are pleased to put closure to this chapter and to continue enhancing our returns to common shareholders.”

The bank holding company is based in Joliet, Ill.

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