Monday, July 11, 2005

When Charlie Hardcastle saw an opportunity to purchase just over 1 percent of stock in Citizens First Corp., he was forced to apply to the Federal Reserve Board for permission to purchase the stock.

The federal agency requires individuals to apply for permission when someone exceeds 10 percent or more in stock ownership. The request seeking permission was published in a recent Daily News legal advertisement.

Ive had about 9 percent since it was formed, Hardcastle said today. Somebody wanted to sell me some more.

Then he found out he needed to apply to the reserve, filling out a mound of paperwork.

I have to tell them Im not a scoundrel, he joked.

Hardcastle is not an officer of the Citizens First Corp. He owns BG Consolidated and is listed as an officer of at least 10 companies, according to the Kentucky Secretary of States Web site.

Im sure theyll send me the forms back two or three times and then Ill send them back, he said. I dont know when it will be approved, I think about 60 days.

The forms arent made out for somebody like me, he added. Theyre made for someone whos buying up a lot more than what I am.

Hardcastle said he simply thought the price was fair for buying and that his decision isnt based on any inside information.

The stock is very thinly traded, he said. I think there was 1,200 traded last month. I dont know if Ill buy it or not. If I think the price is reasonable, Ill buy it. I dont have to buy it. Its like G.E. Its just an investment.

Citizens First Corp. is publicly traded on the NASDAQ. Its symbol is CZFC. The stock last traded for $15.50 a share.

A few weeks ago it traded for 16, Hardcastle said. Its gone up in general, just like the market has gone up in general. Im just going to buy it on the market by calling my broker and seeing if any of it is for sale. Its traded just like U.S. Bank or other stocks.

Hardcastle said a similar process must be followed if a person ends up owning 25 percent of a bank.

I dont expect to be going there (though), he said.

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