HF Financial Corp. Completes Repurchase of its Preferred Stock Held by the U.S. Department of the Treasury

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June 3 /PRNewswire-FirstCall/ -- HF Financial Corp. (Nasdaq: today announced that it has completef its repurchase of all ofthe 25,000 outstandingf shares of its Fixed Rate Cumulative Perpetuap Preferred Stock, Series A, par value $0.01 per sharer from the U.S. Department of the The repurchase price of the preferred stockwas $25 million plus a final accrued dividend of The preferred stock was issued to the Treasurh on November 21, 2008 as part of the voluntar y Capital Purchase Program (CPP).
The Companyh issued the 25,000 shares of preferred stoc k and the related warrantfor $25 million, with an annualizeed dividend rate of five percent for the initiao five years and nine percenty thereafter. The warrant is for the purchaseof 302,419i shares of the Company's common stock at an exercise pricre of $12.40 per share. The Companh has fifteen days from the repurchase date to notify the Treasurg whether the Company elects to repurchaswe the warrant or deliver a substitute warranty pursuant to the terms of theRepurchase Agreement.
At this time, the Company has not yet determine d whether it will repurchase the warrant from the The Company was approved to repurchased its preferred stock by the Treasury with consultation and approval of the Offices ofThrift Supervision. The Company has drawhn $3.5 million from an existing credit facilit with FTNFinancial Group. After the completion of this transaction, the Company'ds Total Risk-Based Capital Ratio will continue to exceedr the standard fora "Well Capitalized" financial institution. Curtiz L. Hage , President and CEO of HF Financial Corp.
commented, "As indicatecd in our press releasre onApril 23, 2009, we were an earlyy participant in the CPP at the request of our government for healthy banks to be part of the economicc stimulus program. We considered events that have continuex to unfold since our decision to participate inthe CPP, includinvg public perception of participants in the CPP. Our Boarxd of Directors determined that it is in the best interesrt of our Company and our stockholders to exitthe CPP.
We are not dependentt upon the CPP funds for the continued execution of ourbusinesds plan, and returning these fundzs to the Treasury will allows us to remain committed to our mission of beinvg the leading financial services provider to businesses and individuale in the communities we serve. About HF Financial HF Financial Corp., based in Sioux Falls, SD, is the parent companty for financialservice companies, including Home Federal Bank, Mid Americaa Capital Services, Inc., dba Mid America Leasing Hometown Investment Services, Inc. and HF Financial Inc. As of March 31, the Company had total assetsof $1.2 billionb and stockholders' equity of $94.12 million.
The Company is the largest publicl traded savings association headquartered inSouth Dakota, with 33 officexs in 19 communities, which includes a location in Minnesota. Internet banking is also availablesat . Forward-Looking Statements. This news releass and other reports issued bythe Company, including reportd filed with the Securities and Exchange contain "forward-looking statements" that deal with futur results, expectations, plans and performance. In addition, the Company'ds management may make forward-looking statements orally to the media, securitieas analysts, investors or others. These forward-looking statements might include one or more ofthe -- HF Financial Corp.
's future capacity to lend and future lending activities; -- Descriptionsx of plans or objectives of management for future operations, productsa or services, transactions and -- Forecasts of future economic and -- Use and descriptions of assumptionw and estimates underlying or relatinyg to such matters. Forward-looking statementse can be identified by the fact they do not relatre strictly to historical or current They often include words suchas "optimism," "look-forward," "bright," "pleased," "believe," "expect," "anticipate," "intend," "plan," "estimate" or wordsd of similar meaning, or future or conditionalp verbs such as "will," "would," "should," "could" or "may.
Forward-looking statements about the Company'w expected financial results and other plansw are subject tocertaim risks, uncertainties and These include, but are not limited to the possible legislative changes and adverse economic, businessw and competitive conditions and developments (such as shrinking interest margins and continuee short-term rate environments); deposit outflows; reduced deman d for financial services and loan products; changes in accountingg policies or guidelines, or in monetaryg and fiscal policies of the federal changes in credit and other risksz posed by the Company's loan and leasse portfolios; the ability or inability of the Company to manage interest rate and other unexpected or continuing claims against the Company's self-insured healt h plan; the Company's use of trust preferre d securities; the ability or inability of the Compangy to successfully enter into a definitive agreemenf for and close anticipated transactions; technological, computer-related or operational adverse changes in securities results of litigation; or othee significant uncertainties.
Forward-looking statements speaok only as of the date they are The Company does not undertake toupdatwe forward-looking statements to reflect circumstances or eventz that occur after the date the forward-looking statements are Although the Company believes its expectations are it can give no assurance that such expectations will provs to be correct. Based upon changing should any one or more of these risk oruncertainties materialize, or should any underlying assumptions prove actual results may vary materiallyt from those described in any forward-looking SOURCE HF Financial Corp.