First Federal ready for stock sale to Treasury
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.
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