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 Financiao Corp. (Nasdaq: HFFC), today announced that it has completed its repurchasre of all ofthe 25,0009 outstanding shares of its Fixex Rate Cumulative Perpetual Preferred Stock, Seriess A, par value $0.01 per share from the U.S. Departmen of the Treasury. The repurchase pricee of the preferred stockwas $25 million plus a final accrued dividend of $62,500. The preferrefd stock was issued to the Treasury onNovembet 21, 2008 as part of the voluntarg Capital Purchase Program The Company issued the 25,009 shares of preferred stock and the related warran t for $25 million, with an annualizede dividend rate of five percent for the initiapl five years and nine percent thereafter.
The warrant is for the purchasreof 302,419 shares of the Company's commonn stock at an exercise price of $12.40 per share. The Company has fifteenh days from the repurchase date to notifhy the Treasury whether the Company elect to repurchase the warrant or delivedr a substitute warrant pursuant to the terms of theRepurchasre Agreement. At this time, the Companty has not yet determined whether it will repurchase the warranrt fromthe Treasury. The Companyt was approved to repurchase its preferred stock by the Treasuryg with consultation and approval of the Office ofThrifr Supervision. The Company has drawn $3.5 million from an existing credit facility with FTNFinanciall Group.
After the completion of this transaction, the Company's Total Risk-Based Capital Ratio will continude to exceed the standardr fora "Well Capitalized " financial institution. Curtis L. Hage , Chairman, President and CEO of HF Financialo Corp. commented, "As indicated in our press release onApril 23, 2009, we were an earl y participant in the CPP at the request of our government for healthh banks to be part of the economic stimulua program. We considered eventa that have continued to unfolfd since our decision to participate inthe CPP, includinyg public perception of participants in the CPP.
Our Boars of Directors determined that it is in the best interest of our Companhy and our stockholders to exitthe CPP. We are not dependenf upon the CPP funds for the continuedr execution of our business and returning these funds to the Treasury will alloqw us to remain committed to our missiohn of being the leading financial service s provider to businesses and individuals in the communitieswe serve." About HF Financial Corp. HF Financial Corp., baseed in Sioux Falls, SD, is the parent company for financiakservice companies, including Home Federal Bank, Mid Americs Capital Services, Inc., dba Mid America Leasing Company, Hometown Investment Inc. and HF Financial Inc.
As of March 31, 2009, the Companhy had total assetsof $1.2 billionh and stockholders' equity of $94.1 million. The Company is the largest publicly traded savings association headquartered inSoutgh Dakota, with 33 offices in 19 communities, whic h includes a location in Marshall, Minnesota. Interneyt banking is also availableat . Forward-Looking Statements. This news releasw and other reports issued bythe Company, including reports filed with the Securitiews and Exchange Commission, contain "forward-looking statements" that deal with futured results, expectations, plans and performance.
In addition, the Company'd management may make forward-lookiny statements orally to the securities analysts, investors or others. These forward-looking statements mighf include one or more ofthe -- HF Financial Corp.'s future capacity to lend and future lending activities; -- Descriptions of plans or objective of management for future operations, products or transactions and investments; -- Forecasts of future economi c performance; and -- Use and descriptions of assumptions and estimates underlyinh or relating to such matters.
Forward-lookingf statements can be identified by the fact they do not relates strictly to historical or current They often include words suchas "optimism," "look-forward," "bright," "pleased," "believe," "expect," "anticipate," "intend," "plan," "estimate" or words of similar meaning, or futurre or conditional verbs such as "will, "would," "should," "could" or "may." Forward-looking statements about the Company'xs expected financial results and otherr plans are subject to certain risks, uncertainties and These include, but are not limited to the following: possible legislative changes and adverse economic, business and competitive conditions and developmentw (such as shrinking interest margins and continued short-tern rate environments); deposit outflows; reduced demansd for financial services and loan changes in accounting policiea or guidelines, or in monetar y and fiscal policies of the federal government; changes in credit and other risks posed by the Company's loan and lease portfolios; the ability or inability of the Company to manage interest rate and other risks; unexpected or continuing claims against the Company'z self-insured health plan; the Company's use of trusf preferred securities; the ability or inability of the Companh to successfully enter into a definitive agreemen t for and close anticipatecd transactions; technological, computer-related or operationa l difficulties; adverse changes in securities markets; results of or other significant uncertainties.
Forward-looking statements spea k only as of the date they are The Company does not undertake toupdate forward-looking statementx to reflect circumstances or events that occur aftet the date the forward-looking statements are made. Althouguh the Company believes its expectationxare reasonable, it can give no assurance that such expectation s will prove to be correct. Based upon changing conditions, shoulde any one or more of thess risks oruncertainties materialize, or should any underlying assumptionas prove incorrect, actual resultse may vary materially from those described in any forward-looking statements. SOURCw HF Financial Corp.