First Farmers Financial Corporation, the parent company of First Farmers Bank & Trust, announced that the bank will not participate in the government TARP Capital Purchase Program. The board stated that despite economic uncertainty, First Farmers believes their adherence to long held strategies of serving local depositors and borrowers will continue to reward stockholders, customers, and employees and that Bank capital remains significantly above levels designated “Well Capitalized” by regulatory guidelines. The bank continues to generate earnings sufficient to support current and expected dividends, and retains earnings to support future growth expectations.
The board did announce that First Farmers will participate in all available Temporary Liquidity Guarantee Programs allowing customers to benefit from extended FDIC Insurance for all depositors. This includes the increase in coverage to $250,000.00 in FDIC insurance, unlimited coverage of non-interest bearing demand accounts, and guarantee of inter-bank lending facilities
