Resale of Preferred issued pursuant to the Small Business Lending Fund

First Bancorp/NC Form S-3 on 9/30/2011 (SEC file no. 333-177096)
First PacTrust Bancorp, Inc. Form S-3 on 9/29/11 (file no. 333-177055)
Horizon Bancorp Form S-3 on 9/26/11 (file no. 333-177007)

The Treasury Department is the initial selling securityholder of senior non-cumulative perpetual preferred shares recently registered by issuers that have participated in the Small Business Lending Fund (SBLF).  Enacted into law as part of the Small Business Jobs Act of 2010, the SBLF is a $30 billion fund that encourages lending to small businesses by providing capital to qualified community banks with assets of less than $10 billion.  By press release dated September 28, the Treasury Department states that the final wave of funding through the SBLF has brought the total funding for the program to more than $4 billion going to 332 banks across the country. 

First Bancorp, a bank holding company headquartered in Troy, North Carolina, received an investment of $63.5 million in the company’s preferred stock on September 1.  The initial dividend rate on the preferred stock was 5% and can fluctuate on a quarterly basis during the first 10 quarters during which the  preferred stock is outstanding, based upon changes in the amount of the issuer's “Qualified Small Business Lending" as compared to a baseline level.  The First Bancorp preferred stock qualifies as Tier 1 capital, is non-voting except in limited circumstances and may be redeemed at any time at the company’s option. 
 
The issuances of the preferred stock were completed in private placements to Treasury exempt from registration pursuant to Section 4(2) of the Securities Act of 1933.  First Bancorp filed the corresponding securities purchase agreement on Form 8-K dated September 6.  First PacTrust Bancorp ($32 million) and Horizon Bancorp ($12.5 million) filed their securities purchase agreements with the Secretary of Treasury on Form 8-Ks dated August 30 and August 26, respectively.