Item 8.01: Other Events

On December 8, 2008, First Financial Service Corporation was notified that it had been selected and preliminarily approved to participate in the United States Department of Treasury's Capital Purchase Program ("CPP"). The Treasury Department recently created the CPP to encourage U.S. financial institutions to raise capital to increase flow of funds to consumers thereby supporting the national economy. On October 20, 2008, Treasury Secretary Henry Paulson stated:
"This program is designed to attract broad participation by healthy institutions and to do so in a way that attracts private capital to them as well."

On December 18, 2008, the board of directors of First Financial Service Corporation unanimously approved the participation in CPP. Under the program, the Company would issue senior preferred shares to the Treasury Department up to $20 million. The senior preferred shares would have a per annum dividend rate of 5% for the first five years and 9% thereafter. The Company would also issue to the Treasury Department ten year warrants for common shares equal to 15% of the preferred share investment, giving the Treasury the opportunity to benefit from any increase in the Company's stock price.

Participation in the Capital Purchase Program would enhance the Company's investment and lending opportunities in the communities served as well as provide adequate capital for growth and expansion. Prior to the Treasury's preliminary approval, the Company's capital ratios were already higher than the amounts to be considered by its regulators to be categorized as "well capitalized". The additional capital will further strengthen these capital ratios. First Financial Service Corporation expects to receive the funds from the Treasury during the first quarter of 2009.