On July 6, 2012, First Federal Savings Bank of Elizabethtown, Inc. ("First Federal"), the banking subsidiary of First Financial Service Corporation (the "Company"), completed its previously announced divesture of its four branch retail bank franchise in Indiana to First Savings Bank, F.S.B. ("First Savings"). The sale of the four retail banking offices, which are located in Corydon, Elizabeth, Lanesville and Georgetown, Indiana, became

effective after the close of business on July 6, 2012.

First Federal received a 3.65% percent premium on the $102.7 million of consumer and commercial deposits at closing. First Savings assumed a total of approximately $115.7 million in non-brokered deposits, which included $13.0 million of government, corporate, other financial institution and municipal deposits for zero premium or discount. First Federal sold approximately $30.4 million in performing loans at a discount of 0.80%. The consummated transaction is expected to result in a one-time gain of approximately $3.5 million.

On July 9, 2012, the Company issued a press release announcing the execution of the Agreement. A copy of the press release is attached hereto as Exhibit 99.1.

(a) Financial Statements of Businesses Acquired: Not applicable

(b) Pro Forma Financial Information: Not applicable

(c) Shell Company Transactions: Not applicable

      (d)  Exhibits

           Number      Description

           10.1        Agreement to Purchase Assets and Assume Liabilities dated as of
                       February 8, 2012, is incorporated by reference to Exhibit 10.1
                       to the Company's current Report on Form 8-K filed February 14,
                       2012.

           99.1        Press Release dated July 9, 2012.