First Southern Bancorp, Inc., Repays TARP Funds by Repurchasing Outstanding Preferred Stock Sold to Treasury Department

Strong Capital Levels Provide Safety and Soundness for Customers and Allow First Southern to Remain Focused on Expansion Strategy and Service

BOCA RATON, Fla.--(BUSINESS WIRE)-- First Southern Bancorp, Inc., today announced that it has exited the Troubled Asset Relief Program (TARP) by repurchasing all of the outstanding preferred stock it sold to the Treasury Department in January 2009 as part of the Capital Purchase Program.

First Southern Bancorp paid approximately $11.5 million to the Treasury Department under this repayment transaction, which includes a final dividend payment of about $51,000, bringing First Southern Bancorp’s total dividend payments under TARP to approximately $818,000. For the 12 months ending Dec. 31, 2009, the dividends and related discount accretion totaled $632,000. Going forward, those charges will be eliminated.

“In February of this year, we announced that we had raised approximately $400 million of capital to grow the company in south Florida and elsewhere through assisted transactions with the FDIC and strategic merger and acquisition opportunities,” said J. Herbert Boydstun, chairman and CEO of First Southern Bancorp. “Through their significant commitment of resources, our investors demonstrated their confidence in our strategy, which also envisioned the repayment of our TARP funds. We’re pleased that we were able to satisfy our obligation to the Treasury Department, and we remain focused on growing our organization and enhancing the quality of service we provide to customers.”

On a pro forma basis, First Southern Bancorp’s March 31, 2010, leverage ratio would be 62.67%, adjusted for the repurchase of stock from the Treasury Department, compared to 10.93% as of Dec. 31, 2009.

“Customers value safety, soundness and the ability to meet their needs when they entrust their deposits to First Southern Bank and turn to us for credit and other products and services,” Boydstun said. “Our capital levels are exceptionally strong, and that provides comfort during these uncertain times. For this reason, we invite those who are looking for safety and soundness in a financial institution to consider banking with First Southern Bank.”

First Southern Bank, headquartered in Boca Raton, Fla., provides comprehensive products and services, including small business, middle market, consumer and online banking; merchant services; and cash management. First Southern Bank has five banking locations in Palm Beach and Broward counties in South Florida.

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KEYWORDS:   United States  North America  Florida  Louisiana

INDUSTRY KEYWORDS:   Professional Services  Banking  Finance

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