First Federal ready for stock sale to Treasury
By John McDermott
The largest Charleston-based bank owner said Monday it has received preliminary approval to sell up to $74.75 million of its stock to the U.S. Treasury.
First Financial Holdings, Inc., owner of First Federal of Charleston, said that within 30 days it plans to issue $65 million in senior preferred stock, along with warrants giving the government the right to buy up to $9.75 million of the company's common stock.
"This capital, which is being provided at favorable market terms, will enhance our capacity to support our market areas through expanded lending activities and economic development," said A. Thomas Hood, president and chief executive officer. "It will also add flexibility in considering strategic opportunities that likely will be available to us as the financial services industry consolidates."
The preferred stock will pay a 5 percent dividend for the first five years. After that, dividend rate will increase to 9 percent if those shares are not redeemed by First Financial.
At least one Charleston-based bank owner, Bank of South Carolina Inc., has said it would not participate in the Treasury stock-purchase program.
For more details, see Tuesday's editions of The Post and Courier.
E-mail this story
Printer-friendly version
Comments
Use the comment form below to begin a discussion about this content.
Notice about comments:Postandcourier.com is pleased to offer readers the enhanced ability to comment on stories. We expect our readers to engage in lively, yet civil discourse. Postandcourier.com does not edit user submitted statements and we cannot promise that readers will not occasionally find offensive or inaccurate comments posted in the comments area. Responsibility for the statements posted lies with the person submitting the comment, not postandcourier.com. If you find a comment that is objectionable, please click "report abuse" and we will review it for possible removal. Please be reminded, however, that in accordance with our Terms of Use and federal law, we are under no obligation to remove any third party comments posted on our website. Read our full Terms and Conditions.
Users can now build user-to-user connections, follow friends' recent posts, add an avatar that fits their personality, and more. If you have posted here before you'll need to sign up again, or if you've never posted before, start now by signing up!
Thank you for your interest in this story. The comment thread for this article has been closed.
- Most Commented
- Most Emailed
- Shared
- Upper King on rise: Hotels, apartments, restaurants changing face of downtown area
- UPDATE: Missing woman's fiance seen leaving scene of burned SUV, carrying a shovel
- Missing woman case gets murkier
- Magnolia Gardens offering free dream wedding to contest winner
- Body of missing woman's fiance was found near handgun
- DAVID SLADE: S.C. offers hybrid car tax credit
- Pinterest: Pinning hopes and dreams
- Ex-Boeing worker claims racism, retaliation in firing
- Black women today: Strong. Resilient. Ambitious.
- MCDERMOTT COLUMN: Golf business has risks, rewards
