Kentucky’s HopFed Bancorp, Inc., holding company for Heritage Bank and Fall & Fall Insurance, reports it has been preliminarily approved to participate in the U.S. Department of Treasury Capital Purchase Program (TARP). The company has 30 days to make a decision on its participation in the program.
HopFed Bancorp is eligible to receive a Treasury Department investment in the company’s preferred stock of up to $18.4 million. The senior preferred stock would have a per annum dividend rate of 5.00 percent for the first five years and 9.00 percent thereafter. The company would also issue the Treasury Department 10 year warrants for common stock equal to 15 percent of the Treasury’s preferred stock investment, giving the Treasury the opportunity to benefit from any increase in the company’s stock price.
John E. Peck, the bank’s president and CEO, said the funds would enhance the company’s lending and investment opportunities as well as provide capital to expand into new markets and to fund strategic acquisitions.
HopFed Bancorp, Inc. is a holding company of Heritage Bank headquartered in Hopkinsville, Kentucky. The bank has 18 offices in western Kentucky and middle Tennessee as well as Fall & Fall Insurance of Fulton, Kentucky, Heritage Solutions of Murray, Kentucky, Hopkinsville, Kentucky, Dickson, Tennessee, and Pleasant View, Tennessee and Heritage Mortgage Services of Clarksville, Tennessee.
Source: HopFed Bancorp, Inc.
www.bankwithheritage.com.
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