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First Financial Service Corporation Announces Agreement to Divest Indiana Bank Franchise and Improved Fourth Quarter Results

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First Financial Service Corporation (NASDAQ: FFKY) today announced that its banking subsidiary, First Federal Savings Bank of Elizabethtown, Inc., has signed a definitive agreement to divest its four branch retail bank franchise in Indiana to First Savings Bank, F.S.B., the banking subsidiary of First Savings Financial Group, Inc..

The purchase price will represent a 3.65% percent premium based on the actual level of consumer and commercial deposits at closing, which were $99.7 million at December 31, 2011. Under the agreement, First Savings Financial Group, Inc. will also acquire government, corporate, other financial institution deposits and municipal deposits, which were $17.5 million at December 31, 2011, at book value. A total of $35.4 million of performing loans will be purchased at a discount of 0.80% based on the actual level of loans at closing.

The consummated transaction would result in a one-time gain for the Company of approximately $3.4 million based on information at December 31, 2011.

 

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