FBMI Firstbank Corp. (MM)

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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