First BancTrust Corporation to Participate in U.S. Treasury Capital Purchase Program

PARIS, Ill., Feb. 20 /PRNewswire-FirstCall/ -- First BancTrust Corporation (the "Company") (Pink Sheets: FIRT)(News), today reported that it has received approval to participate in the U. S. Treasury's Capital Purchase Program (the "CPP"). As a result, the Company issued $7.35 million in senior preferred stock (Series A) to the Treasury today. This preferred stock issue will bear an annualized dividend rate of 5% for the initial five years it is outstanding, after which, the dividend rate will increase to 9%. In conjunction with the issuance of this stock and in compliance with the terms of the CPP program for private institutions, the Company has issued $368,000 in senior preferred stock (Series B) which will bear an annualized dividend rate of 9% until it is redeemed. Both series of preferred shares are callable at par in whole or in part after three years or at any time prior to this with regulatory approval. The Company is not required to issue warrants for Common Stock to the Treasury; therefore, there will be no dilution of ownership for common stock holders. A summary of the Capital Purchase Program can be found on the Treasury's website at: www.ustreas.gov/initiatives/eesa.

Use of Additional Capital

President & CEO Jack Franklin stated, "First Bank remains committed to serving the needs of Edgar, Clark, and Champaign Counties. Our expectation is to use the funds to generate additional loans that will enhance the economic activity in the markets we serve. We firmly believe that the purpose of the Capital Purchase Program is for banks to utilize the capital for enhanced lending, and that is what we intend to do. Our revised projections for 2009 and beyond now include additional loan growth to demonstrate this commitment." Franklin added, "It is important that both our shareholders and customers understand that participation in the CPP funding is not a grant, but rather a program whereby Treasury has agreed to temporarily advance capital to healthy financial institutions to enable them to help stimulate economic recovery by increasing their lending capacity. Such capital will be repaid under specific terms and within targeted timelines. Our management team prepared a thorough, five year financial projection which guided our decision to accept these funds. We believe that the utilization of these funds will help promote greater economic growth in the communities we serve and result in a stronger, more profitable financial institution by the time we completely redeem both series of preferred shares."

About First BancTrust Corporation

First BancTrust Corporation is a holding company that owns all of the capital stock of First Bank & Trust, S. B., an Illinois-chartered savings bank that conducts business from its main office located in Paris, Illinois, and branch banks in Marshall, Savoy, Rantoul, and Martinsville, Illinois. First Bank & Trust serves East Central Illinois with a full range of deposit services and residential, business, agricultural, commercial real estate, construction, and consumer loans.

Footnote:

This press release may contain certain forward-looking statements which are based on management's current expectations regarding economic, legislative, and regulatory issues that may impact the Company's earnings in future periods. Factors that could cause future results to vary materially from current management expectations include, but are not limited to, general economic conditions, changes in interest rates, deposit flows, real estate values, and competition, changes in accounting principles, policies, or guidelines, changes in legislation or regulation, and other economic, competitive, governmental, regulatory, and technological factors affecting the Company's operations, pricing, products, and services. These risks and uncertainties should be considered in evaluating forward-looking statements and undue reliance should not be placed on such statements. Further information concerning the Company and its business, including additional factors that could materially affect the company's financial results is available at www.firstbanktrust.com/firt.htm or by faxing a request for a copy of our latest press release to (217) 465-0285. First BancTrust Corporation stock is traded Over-the-Counter (OTC) on Pink Sheets. Investors can view First BancTrust Corporation's security quotes and profile on www.pinksheets.com under ticker symbol, "FIRT".

SOURCE First BancTrust Corporation