Firstbank Corporation Announces $10.0 Million Issuance of Trust Preferred Securities
October 12 2004 - 3:08PM
PR Newswire (US)
Firstbank Corporation Announces $10.0 Million Issuance of Trust
Preferred Securities ALMA, Mich., Oct. 12 /PRNewswire-FirstCall/ --
Firstbank Corporation ("Firstbank") (NASDAQ:FBMI) today announced
that it has raised $10.0 million through a private offering of
trust preferred securities. The trust preferred securities were
issued by a special purpose trust subsidiary as part of a pooled
transaction. The trust preferred securities will mature in 30 years
and bear an initial interest rate of 4.05% per annum. The rate will
adjust quarterly to three- month LIBOR plus a specified spread.
Interest on the securities is payable quarterly. Firstbank may
redeem the trust preferred securities, in whole or in part, on or
after October 18, 2009, or earlier under certain conditions. The
proceeds of the trust preferred offering qualify as Tier 1 capital
for regulatory purposes, up to 25% of total Tier 1 capital. "This
offering provides the company with long term funding which not only
supplements our regulatory capital, but also provides additional
capital which can be used to enhance our capital management or for
future growth opportunities," stated Thomas R. Sullivan, Chief
Executive Officer. Firstbank expects to use the net proceeds from
the offering for general corporate purposes, including paying down
a line of credit. Firstbank had drawn on its line of credit to fund
the common stock self tender offer that was completed in August
2004. Now that the self tender offer has been completed and the
trust preferred capital is in place, Firstbank has the ability at
its discretion to purchase additional shares of its common stock in
the open market pursuant to previously announced stock repurchase
programs. Stifel, Nicolaus & Company, Inc. acted as referral
agent for the transaction. Firstbank intends to release its third
quarter earnings on October 19, 2004. Firstbank Corporation,
headquartered in Alma, Michigan is currently a five bank financial
services company with assets of $786 million and 35 banking offices
located in central and northeast Michigan. Bank subsidiaries
include: Firstbank - Alma; Firstbank (Mt. Pleasant); Firstbank -
West Branch; Firstbank - Lakeview; and Firstbank - St. Johns. Other
corporate affiliates include 1st Armored, Inc.; 1st Title; Gladwin
Land Company, Inc.; and C. A. Hanes Realty, Inc. Investment
services are available through affiliations with CB Wealth
Management, MML Investors Services, Inc., and Raymond James
Financial Services Inc. This press release shall not constitute an
offer to sell or the solicitation of an offer to buy the trust
preferred securities. The foregoing material may contain
forward-looking statements. Firstbank cautions that such statements
may be subject to a number of uncertainties and actual results
could differ materially and, therefore, readers should not place
undue reliance on any forward-looking statements. DATASOURCE:
Firstbank Corporation CONTACT: Samuel G. Stone, Executive Vice
President and Chief Financial Officer of Firstbank Corporation,
+1-989-466-7325 Web site: http://www.firstbank-corp.com/
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