Capital Purchase Program

So much has been in the news lately about our economy and these uncertain times. Citizens First is committed to the communities we serve. It is comforting to know that, in Citizens First, you have a financial partner that is here today and will be here tomorrow to help you with your financial needs.
Citizens First recently chose to take advantage of the Capital Purchase Program, a program of the U.S. Treasury. The questions and answers below are to help you better understand this program and its benefits.

What is the Capital Purchase Program?
The Capital Purchase Program is designed to expand the lending capacity of banks that are already stable and well-capitalized. The U.S. Treasury invited Citizens First and other banks across the country to apply to participate in this program. This is not financial aid. It is an investment made by the U.S. Treasury with a reasonable return.
Why did Citizens First choose to participate in this program?
We believe that our participation in this program will afford us even greater opportunities to meet our customers’ credit needs. We are always seeking ways to serve our customers more effectively, and this program will provide us with additional lending capacity when our customers need it most. Rest assured that credit quality has always been of utmost importance to Citizens First, and it continues to be in these uncertain economic times.
Does participating in this program mean Citizens First is in trouble?
No. Well-capitalized and well-managed bank holding companies and banks have been encouraged to participate in this program, which was designed to stimulate local economies across the country. While the bank is considered well-capitalized by all regulatory standards, the additional capital provided under the Treasury’s program will further strengthen the bank’s capital base and provide additional flexibility to meet future capital needs that may arise.
Why is the U.S. Treasury offering this program?
The Treasury announced this voluntary program on October 14, 2008 with the intent to increase the capital and lending capacity of healthy U.S. financial institutions. The program is part of the Emergency Economic Stabilization Act of 2008.
What other banks in our region are participating?
According to the U.S. Treasury’s website,* as of December 30, 2008, we are honored to participate in this program with other banks in our region – BB&T, US Bank and PBI Bank.
*www.ustreas.gov/initiatives/eesa/transactions.shtml.

While these unstable times create uncertainty, we want you to know that Citizens First remains a safe place for you to put your money and to look to for your credit needs.

Citizens First Corporation operates as a holding company for Citizens First, Inc., which provides various banking and financial services primarily to individual and corporate customers in Barren, Hart, Simpson, and Warren counties, Kentucky. The company’s deposit portfolio primarily includes checking accounts, regular savings accounts, NOW accounts, money market accounts, sweep accounts, fixed and variable-rate IRA accounts, certificate of deposit accounts, and safety deposit boxes. It makes commercial loans principally to small and medium-sized businesses; originates and maintains commercial real estate loans; and offers residential mortgage loans to borrowers for purchasing and refinancing one to four family properties.

Citizens First also offers personal loans and lines of credit to consumers for various purposes, such as purchase of automobiles, boats, and other recreational vehicles, as well as the making of home improvements and personal investments. In addition, the company provides debit and credit card services through third parties, and offers night depository, direct deposit, cashier’s and traveler’s checks, and letters of credit. As of October 1, 2007, it operated ten branch locations and 18 automated teller machines. The company was incorporated in 1975 and is headquartered in Bowling Green, Kentucky.

Citizens First Corporation Stock Info - CZFC
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