Attached files
| file | filename |
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| 8-K - FIRST FINANCIAL SERVICE CORP | v209198_8k.htm |
| EX-10.1 - FIRST FINANCIAL SERVICE CORP | v209198_ex10-1.htm |
| EX-10.2 - FIRST FINANCIAL SERVICE CORP | v209198_ex10-2.htm |
FOR
IMMEDIATE RELEASE
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January
27, 2011
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For
More Information Contact:
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Gregory
S. Schreacke
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President
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First
Financial Service Corporation
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(270)
765-2131
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First
Financial Service Corporation
Announces
Agreement With Regulators
Elizabethtown,
Kentucky, January 27, 2011 – First Financial Service Corporation (NASDAQ: FFKY)
today announced that its subsidiary, First Federal Savings Bank of
Elizabethtown, has entered into a consent order with the Federal Deposit
Insurance Corporation (FDIC) and the Kentucky Department of Financial
Institutions (KDFI). The Company has voluntarily agreed to take
various steps to improve the balance sheet, including increasing capital ratios
and reducing its concentration in commercial real estate loans and the level of
non-performing assets.
B. Keith
Johnson, Chief Executive Officer of First Federal Savings Bank stated, “A key
issue resulting in the consent order was the increase in non-performing assets
in 2010. The non-performing assets are predominantly comprised of
residential housing and residential housing development loans in Jefferson and
Oldham Counties. Many high-end subdivisions, while showing initial
progress, have stalled due to the recession. Residential markets in
other areas, such as Hardin and Meade Counties, have shown improvement as a
result of a projected local population increase of 14,000 from the Base
Realignment and Closure Act affecting the Fort Knox Military Base.”
First
Federal Savings Bank’s ability to serve its customers will not be impacted by
these actions and customer deposits remain fully insured to the highest limits
set by the FDIC.
The
consent order was negotiated between First Federal Savings Bank and the FDIC and
KDFI. “We are striving to meet all of its requirements in the time frames
specified. Many of the items stipulated in the agreement are items the Bank has
already been focusing on improving. The Bank has been focused on
working through these credits and reducing commercial real estate concentrations
since the regulatory examination. We anticipate continued progress
during the first two quarters of 2011. We’re proud of our strong
history and we are confident that we will work through these challenging
times. We have a solid plan in place and very good bankers on our
team. We value our customer relationships and look forward to serving
them for many years to come” said Johnson.
First
Financial Service Corporation is the parent bank holding company of First
Federal Savings Bank of Elizabethtown, which was chartered in
1923. The Bank serves the needs and caters to the economic strengths
of the local communities in which it operates and strives to provide a high
level of personal and professional customer service. The Bank offers
a variety of financial services to its retail and commercial banking
customers. These services include personal and corporate banking
services, and personal investment financial counseling
services. Today, the Bank serves eight contiguous counties
encompassing Central Kentucky and the Louisville Metropolitan area, including
Southern Indiana, through its 22 full-service banking centers and a commercial
private banking center.
This
press release contains forward-looking statements. Statements that are not
historical or current facts, including statements about beliefs and
expectations, are forward-looking statements and are based on the information
available to, and assumptions and estimates made by, management as of the date
made. These forward-looking statements cover, among other things, anticipated
future revenue and expenses and the future plans and prospects of First Federal
Savings Bank. Forward-looking statements involve inherent risks and
uncertainties, and important factors could cause actual results to differ
materially from those anticipated. Adverse conditions in the commercial real
estate markets, as well as a delay or failure of recovery in the residential
real estate markets, could cause additional credit losses and deterioration in
asset values. First Financial Service Corporation’s results also be adversely
affected by further deterioration in business and economic conditions both
generally and in the markets we serve; changes in interest rates; deterioration
in the credit quality of its loan portfolios or in the value of the collateral
securing those loans; deterioration in the value of securities held in its
investment securities portfolio; legal and regulatory developments; increased
competition from both banks and non-banks; changes in customer behavior and
preferences; effects of critical accounting policies and judgments; and
management’s ability to effectively manage credit risk, residual value risk,
market risk, operational risk, interest rate risk, and liquidity
risk.
For
discussion of these and other risks that may cause actual results to differ from
expectations, refer to First Financial Service Corporation’s Annual Report on
Form 10-K for the year ended December 31, 2009, on file with the Securities and
Exchange Commission, including the section entitled “Risk Factors,” and all
subsequent filings with the Securities and Exchange Commission. Forward-looking
statements speak only as of the date they are made, and First Financial Service
Corporation undertakes no obligation to update them in light of new information
or future events.
First
Financial Service Corporation’s stock is traded on the Nasdaq Global Market
under the symbol “FFKY.” Market makers for the stock
are:
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Keefe,
Bruyette & Woods, Inc.
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FTN
Midwest Securities
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J.J.B.
Hilliard, W.L. Lyons Company, Inc.
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Howe
Barnes Investments, Inc.
|
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Stifel
Nicolaus & Company
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Knight
Securities, LP
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