ams.
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Marker:
Atlantic Coast Finan (ACFC)
$5.91 down -0.18 (-2.96%)
Volume: 23,864
Marker:
Barclays (BCS)
$ 6.986 down -1.904 (-21.42%)
Volume: 136,491,350
Banks are like sharks in that they have to always be moving forward in order to breath and survive. When sharks stop swimming forward they slowly suffocate and that's true for banks as well.
Moving forward for a bank means constantly and aggressively seeking "growth" in all of its forms.
A passive approach, much like what I see the CIBH BoD taking, is the very bare bones minimum of what is required from D&O in a post 2009 banking crisis environment.
These guys have a pleasure cruise mentality wherein organic growth is good enough. I don't agree with that and here's why.
Regulations
Bank regulations since you first got in CIBH back in 2002 are nothing compared to banking regs today. Since 2002 there have been monumental regulatory changes..all of which are very burdensome and very costly $$ for banks. Retail shareholders rarely if ever understand how much compliance costs effect earnings per share. Compliance costs in 2002 is chicken feed to what it is 2016. Therefore it is imperative that banks must seek an economy of scale.
Competition
The competition to gain customers in 2016 makes 2002 when you got in look like childs play. There are over 7,000 banks in this country all competing for virtually the same customers. If CIB Marine bank does something I don't like as a customer I not only don't have to go to the bank on the next corner I can go to places like Charles Schwab to bank or dozens of others just like them.
There were no internet banks back in 2002. I know of 2 internet banks right now that are growing at over $1.2 Billion dollars in assets every 12 months and have for the past 3 years running. That means they grow 4 times the size of CIBH every 12 months. Some of those customers would have been CIB Marine customers back in 2002...but in 2016 they have a myriad of choices on where to bank.
Back in the 50's and 60's when my father bought cars.. and houses.. and boats.. and took out personal loans or college money back in the day he had 2 choices of where to get the money - 1) a loan shark named Tony the bull or 2) his local bank. Fortunately dad chose the local bank. But today you and I can go to thousands and thousand of different lenders to get our banking needs met. We don't need the brick n mortar bank on Main St anymore.
Banks have to grow to survive XM ROCKS...and you cannot grow if you don't have a pile of cash to do it with. Capital matters.
Organic growth won't cut in the 21st century. You have to aggressively grow.. or be taken out.
The next offer may not be so good. And my prediction is it won't be.
This isn't a matter of not believing in the management. I don't believe in their strategy. I see it as nothing more than self preservation.
A PE firm coming in would have brought a barrel of money with the express purpose to grow the company and do it in the express lane...and in return they would have expected a barrel of performance...and the BoD knew it!
They knew their days were numbered if Wilson & Co came in. This wasn't a case wherein the incoming PE firm was a bad idea for lowly shareholders... it was a bad idea for the D&O because it meant the party would be over. D&O can be selfish people like anybody else.
I respect your decision and opinion on how you decided to handle this. I think there were opportunities and options in this offer that could have been overlooked.
Sincerely...best of luck!
Marker:
Cib Marine Bancshare (CIBH)
0.58005 down -0.00995 (-1.69%)
Volume: 16,440
Capital infusions finance future bank deals.
Fresh capital would have turned the bank from its perennially stagnant anemic condition into a potential acquirer.
The bank would have been better able to meet the needs of their retail and commercial banking customers...i.e bigger loans.. and in so doing produce higher earnings for shareholders.
Cash matters.
=========
Marker:
Cib Marine Bancshare (CIBH)
0.58 0.0 (0.00%)
Volume: 0
Wells Fargo has no equity position in this BK and therefore no equity interest.
WF does however have interest as an unsecured creditor.
They are among the 7 largest unsecured creditors with claims against the SandRidge estate. And because of that they automatically qualify to be on the court appointed Unsecured Creditor Committee [OUCC].
More info;
https://en.wikipedia.org/wiki/Unsecured_creditor
Marker:
Sandridge Energy, In (SDOCQ)
0.0192 down -0.0009 (-4.48%)
Volume: 4,146,892
Farmers & Merchants Bancorp to Acquire Delta National Bancorp
June 8, 2016 8:54 PM
LODI, Calif.--(BUSINESS WIRE)--
Farmers & Merchants Bancorp (FMCB), a bank holding company headquartered in Lodi, California, and Delta National Bancorp (OTC Pink:DEBC), headquartered in Manteca, California, today announced that a definitive agreement has been signed by both parties. Under the terms of the agreement, Delta National Bancorp will merge into Farmers & Merchants Bancorp. The transaction is subject to customary closing conditions, including regulatory approvals and Delta National Bancorp’s shareholder approval. The Farmers & Merchants Bancorp and Delta National Bancorp Boards of Directors have unanimously approved the transaction, which is expected to close early in the fourth quarter of 2016.
Delta National Bancorp common shareholders will be entitled to receive, in total, 12,074 shares of Farmers & Merchants Bancorp common stock, subject to certain adjustments described in the definitive merger agreement. Based on the 20 day daily volume weighted average price of Farmers & Merchants Bancorp as of June 6, 2016, the transaction would have a value of $6.6 million, or $17.30 per Delta National Bancorp common share. However, the deal value for the common shareholders will fluctuate with changes in Farmers & Merchants Bancorp’s stock price. Delta National Bancorp’s preferred shareholders will receive $19.827 per share in cash. Farmers & Merchants Bancorp expects the acquisition to be immediately accretive to tangible book value and accretive to earnings in 2017, the first full year of combined operations.
Delta National Bancorp will be merged with and into Farmers & Merchants Bancorp and Delta National Bancorp’s banking subsidiary Delta Bank National Association with four full service branches (one branch in San Joaquin County in the city of Manteca and three branches (Riverbank, Modesto, Turlock) located in Stanislaus County), will be merged with and into Farmers & Merchants Bancorp’s banking subsidiary Farmers & Merchants Bank of Central California. The names of the combined entities will remain Farmers & Merchants Bancorp and Farmers & Merchants Bank of Central California.
The Farmers & Merchants Bancorp’s Board of Directors and the Farmers & Merchants Bank of Central California Executive Management team, led by Kent Steinwert, Chairman, President and CEO, will continue to lead the combined team of professional bankers. Warren Wegge, President, CEO and Director of Delta National Bancorp, will work with Farmers & Merchants Bancorp as an advisor through the integration process. Delta National Bancorp’s current Directors, Valerie Rossi and Toinette Rossi will continue in consulting roles for a period of one year.
As of March 31, 2016, Farmers & Merchants Bancorp on a pro forma consolidated basis with Delta National Bancorp would have had approximately $2.7 billion in total assets, with 28 locations serving California’s Central Valley and East Bay Area regions.
[....]
About Delta National Bancorp
Delta National Bancorp is the parent holding company for Delta Bank National Association, a locally owned and operated community bank established in 1973, serving the needs of consumers and businesses through four locations in Stanislaus and San Joaquin county. As of March 31, 2016, the Bank had approximately $106 million in assets and serves the communities of Manteca, Riverbank, Modesto and Turlock.
[....]
http://finance.yahoo.com/news/farmers-merchants-bancorp-acquire-delta-005400471.html
*Marker post announcement on the acquired bank;
Delta National Bancorp (PC) (DEBC)
$ 16.50 up 8.60 (108.86%)
Volume: 191
**Marker
Farmers & Merchants (FMCB)
$610.00 up 10.0 (1.67%)
Volume: 32
For the filing company bankruptcy is not about what will be...its about what was.
SandRidge has always been a highly leveraged marginal producer even at $100 @ bbl oil.
$62 was a conservative number... the actual number is much higher and closer to $75.
Today that oil is worth $51/barrel, which means the company's reserves are now worth $13,668,000,000, or well over $13.6 billion. That's a $1.6 billion increase in value!
The number of outstanding shares today is 14.91 million. If we divide that $1.6 billion of increased value by the number of outstanding shares, then each share would be worth $107.84!
Oil is a seasonal commodity. Valuation is a moving target.
0% Tjet...but they emerge a healthier and leaner competitor...so in some ways you could consider it a 'discount'.
The unknown in this for me is what about the NOL's. I would have to defer that to someone with masters degree in accounting...someone from SMU preferably. Know anyone like that?
My question is: How many new shares are they planning to issue?
Anybody know?
AND THEN, multiply THAT, times the guesstimate of $5 PPS.
It should give an idea of what the(possible future New Owners think)
the Company is REALLY WORTH.
The initial production from early results indicate production on par with/or above the best Niobrara wells to date. For reference the best wells initial production rates were above 1,200 to 2,000 bbl. oil per day.
What will be the price of new issuance of stock....give or take?
Marker:
Matador Resources Co (MTDR)
$23.38 up 0.86 (3.82%)
Volume: 908,431
Do you guys honestly think management went out and borrowed billions of dollars to drill for oil all based on oil being $100 @ bbl wanted to see the price collapse through no fault of their own??
OCN has fallen off a cliff. Its not known if OCN remains to be in the Hayman Capital Management portfolio but if it is its yet another enormous misfire. HCM went in 15 months ago for 3.26MM shares at $21.65 (roughly $71MM) ...and the stock currently sits at $2.22...OUCH.
Marker:
Ocwen Financial Corp (OCN)
$2.22 up 0.2 (9.90%)
Volume: 3,694,377
First Century Bank signs merger agreement
6/3/2016
BLUEFIELD — For the first time since it was founded in 1891 as the First National Bank of Bluefield, First Century Bank [FCBS] is being acquired by another company.
Summit Financial Group, Inc., based in Moorefield, has signed a “definitive merger agreement” with First Century Bankshares Inc.
“We have always been the acquirer,” said J. Ronald Hypes, senior vice president and chief financial officer of First Century. “So this is the first time we have been on the other side of the transaction.”
Hypes said one of the main factors in the acquisition is that banks are under more regulatory pressure now than they have ever been.
“The community banking model can absorb only so much of that,” he said. “The regulatory pressure continues to make it difficult to do business.”
Hypes said the bank has good relationships with the regulators, but the costs associated with complying must be taken into consideration.
With larger banking systems, those costs can be more effectively absorbed, he said, adding that Summit is a $1.6 billion company, about four times the size of First Century (with approx. $406MM in assets).
Hypes said the merger presents some good news for customers because a larger variety of services can be offered by taking advantage of a “larger brand.”
“We are very excited about the transaction,” he said, adding that the merger should be finalized by the end of the year.
“That is our target date,” he said. “There are a lot of things that have to happen ... and our shareholders have to approve the transaction, but we should be able to close (near the target date).”
Hypes said the name of the bank will change to Summit Community Bank after the transaction closes, and all branches are now slated to remain open since the location of the two companies’ current branches do not overlap.
“It’s a natural fit,” he said of the acquisition.
The transaction has already been unanimously approved by each company’s board of directors.
“We are extremely pleased to be able to partner with Summit, a company who shares the same long-standing commitment to community banking as First Century has held for almost 125 years,” said First Century CEO Frank Wilkinson. “Our board of directors has been through an extensive process to help determine the best opportunities for our shareholders, customers and employees and we believe Summit is the right partner as we move forward.”
Wilkinson said local banking services will be improved because of the additional enhanced technology and other banking services that will be available through the merger.
“Also by partnering with Summit, our customers will still be able to see familiar faces and know that we will maintain the relationships that have been built over the years,” he said. “This will include local decision making and expanded lending limits to grow valued relationships into the future.”
H. Charles Maddy III, president and CEO of Summit, said the acquisition offers opportunities.
“This transaction represents an exceptional opportunity for Summit to combine with a financially strong and exceptionally well-managed bank possessing a culture of core values similar to ours...” he said. “Our top priority now is to ensure First Century’s clients experience a smooth transition.”
Summit will acquire all of the outstanding shares of common stock of First Century in exchange for cash in the amount of $22.50 per share or 1.2433 shares of Summit common stock, according to the statement released by the company.
First Century shareholders will have a right to receive cash, Summit’s common stock or a combination of cash and Summit common stock.
First Century Bank’s main office is located in Bluefield with 12 locations serving six counties in southern West Virginia and southwestern Virginia.
Those branches include three in Bluefield, W.Va., two in Princeton, one in Bluefield, Va. as well as in Beckley, Hinton, Oceana and Pineville in W.Va. and Max Meadows, Wytheville and Christiansburg in Va.
Source:
http://www.bdtonline.com/news/first-century-bank-signs-merger-agreement/article_5b933118-2939-11e6-ade0-1bea963a640e.html
==========
Breakdown of the deal goes as follows:
Market value before the announcement was $21.05.
Book value is: $23.80.
Summit Financial Groups' cash offer: $22.50 @ share
This represents a buy out of less than 1X Book coming in at 0.945 X book.
Marker:
First Century Banksh (FCBS)
$21.05 down -0.25 (-1.17%)
Volume: 1,740
Actually no tender means no floor.
The 'floor' falls to BV .42.. and on a fully diluted basis to .27.
Nothing long about it. Its day trader 'churn'.
one cent, 2 cent, sub-penny...whatever...the number doesn't really matter...its a % game for them ...and they know there will always be 'believers' to sell to.
Its a rough game but totally legal. You just don't want to be the last bag holder.
There aren't any laws against buying "dead" securities any more than there are laws against buying a dead dog. ":~O
I couldn't agree more.
Many, if not all, saw and heard the warnings that bankruptcy was imminent then ignored it and stayed in anyway. It happens in every bk of this type.
The Plan calls for legacy shares to be cancelled.
If you couldn't make your house or car payments PennytoMillion wouldn't you expect the bank to repossess those things??... and have the legal right to do so? That's essentially what is happening here only management decided to throw in the towel before every dollar was gone.
Oil always goes up in the summer...but the problem for struggling oil companies is it doesn't stay there.
Let's be clear - When you hold shares of common equity you are an owner...which also means you are the debtor. And as an owner/debtor you have a responsibility to pay your debts. You signed legally binding contracts saying you would.
Insolvency isn't something you 'vote' on. You either are or you aren't.
How so? You're an owner who can't pay his bills. How is that fair to the people you owe money to??
If you've kept up with the board then you've known the bottom fell out of the price of crude nearly 2 years ago and that the company warned everyone last March they were headed for BK. What part of that is unethical??
1) Can the company cancel chapter 11 ?
...are you feeling insecure again already! Holy cow man it hasn't been 24 hours since you last reminded everyone what you hold. You manage to work that in to every conversation you engage in. You like to hear yourself talk about what you hold..what's up with that?
Look man I'm thinking Clutterbuck and Wilson got better things to do than keep tabs on the ramblings on this board..mine included.
What you fail to understand is I want you to win..and I want you to win big. I'm serious.
This is just a place to discuss factors and strategies.. not the place to constantly announce how many shares we got..or the molecular makeup of our testicles. There are a couple of ladies who read this board who should be respected enough to leave mindless bravado (i.e. nonsense) out of the discussion. Let dignity stand tall.
You've made your position crystal clear. Everybody gets it. Now allow room for other thoughts as to where this bank stands. It's not a hopeless helpless bank..ok..I agree...but that doesn't mean there aren't ways to accelerate their progress. Organic growth is one way but not the only way to grow a bank. There are much quicker ways.
I'll say it again - Cash infusions by private equity are the elixir for anemic banks.
I've seen proof of that dozens and dozens of times.
Look gumzsa you gotta quit being so defensive man. Its blinding you to reality. Nobody said CIBH is a terrible bank to invest in. NOBODY. But when you guys purposely push the price on a mediocre bank to 3 x what the bank is worth you're shooting yourselves in the foot. Its a free country...you can do whatever you want..hit the ask all you guys want ...buy buy buy...push it higher for no reason whatsoever just to prove you can do it... but don't tell the world this is how smart investing is done ..ok..and expect no pushback.
If you put nonsense out to the investing community expect a firm response.
*Let me remind you guys that Ihub is a nothing more than a posting site for traders and investors. It is NOT an exclusive club for the shareholders of each stock represented.
The annual meeting will be fun. Will be interesting to see how the board (who owns almost 0 shares of stock collectively themselves) justify mediocrity. With $4.2mm needed to pay pref dividends / year before .01 can be distributed (or returned) to shareholders what is managements grand plan? Seems the only way for shares to be worth ANYTHING is to sell this thing (assuming anyone would want to buy a mediocre franchise). Even if they do sell, with the pref convertible into half the company at .25 / share, is the stock ever going to be worth more than a token amount above .25?
so whats your point?
Profitability is anything to ‘Pound the Table’ about
While it’s great that CIB Marine Bancshares has been growing their asset base and loan portfolio at an above average rate the banks current profitability situation may be what is holding the bank back from trading at book value.
The company has an unimpressive ROE and ROA ratios of 0.48% and 0.05%, respectively. Furthermore, CIB Marine Bancshares’ expense structure isn’t optimized, which has pushed their efficiency ratio to 98.20%.
When comparing the company to its local peers, we can see that they have some of the lowest profitability ratios in their operating area.
Marker:
Ohana Pacific Bank ( (OHPB)
$6.00 0.0 (0.00%)
Volume: 0
* just checking the pulse.
What about the preferred shares in all of this...how do they fit into the mix??..do they pose an obstacle for common equity moving forward?? Can they??...do they??..will they??
How does a multi-million dollar cash infusion help that situation?
Are these the kinds of questions that should be discussed?? or do we just need more mindless bravado??
I'm thinking maybe Wilson & Co are not really the bad guys this board seems to think they are. I'm thinking they're more of a blessing in disguise.
As usual this board has things completely bassackwards. They see .60 as the "ceiling" ...when in reality it serves as the "floor".
The board needs to ask better questions.. not provide more bravado. That doesn't help anybody.
I say we take another look. Its not everyday you have investors making offers to help your bank...which ultimately helps you.
Oopps...wrong answer.
I don't care what you do with your shares...you assume too much.
OK try again.
Why doesn't Wilson & co buy shares on the open market like everyone else?
What's up with that?
There is a reason Wilson & company have no interest in buying shares on the open market. Why? I'll answer with another set of questions - The bank needs capital asap how does buying shares on the secondary market help infuse the bank with badly needed capital? What good would that do the bank? How would the bank benefit from that? The answer - It doesn't. Not one cent spent on the secondary market goes to a banks bottom line wherein its desparately needed.
The offer to tender shares at .60 is a generous courtesy to some legacy shareholders who are otherwise in an illiquid situation.
Infusing the bank with capital is just what the doctor ordered to help propel the bank to the next level which is what everyone here wants. What Mr. Wilson & co are proposing is done all the time in the banking industry. There are a ton of deals structured exactly like this one in the banking industry and especially the past 7 years. Would you rather see Uncle Sam bail the banks out or would you rather see private funding help the banks. Its that simple people. There is nothing irregular nor shady happening here.
Are they doing it to profit? Absolutely...but since when is it a crime to make money when you lend someone millions of dollars to do it with? When did making a profit become an evil thing? have you ever heard someone say - "follow the money"? ..well here's your chance. Wilson & co are offering you a chance to ride along with them...and do it for the same price they paid.
Mr. Wilson & co should be welcomed with open arms. There are hundreds of other financially impotent banks just like CIBH out there that would jump at such an offer.
What are some of the possible reasons current management wouldn't want their involvement? The bank has had 3 years to show that their strategy is working and failed miserably. Regardless of what they say to your face look at the results and ask yourself if they really do have the answers. They're more interested in keeping their jobs than they are watching the backs of the shareholders.
Cash infusions are the elixir for anemic banks and I challenge anyone to prove otherwise.
Condemnation before investigation is the highest form of ignorance. ~~ Albert Einstein
Marker:
Cib Marine Bancshare (CIBH)
0.65 up 0.07 (12.07%)
Volume: 6,000
What trips me up is, why a company with $7 billion in assets and $3-$4 billion in liabilities has to wipe out its entire common shareholder bracket completely to cover their butt in a bankruptcy case
I was thinking the same thing, if oil went above $50, which I think is a psychological barrier for many investors, could it help the shareholders case. Would it drive oil even higher really helping the shareholders case. Most people are flipping this but if any news comes out suggesting as much this could really take off again.
BofI Holding, Inc. Eating Short-Sellers' Lunch With Another Huge Quarter
April 29, 2016, 10:21:39 AM EDT
BofI Holding reported third-quarter financial results on April 28, and it was another huge growth period for the bank, even in the face of an unyielding and continuing attack on the company from short sellers. Income from both net interest and fees was up, earnings per share increased 65%, and the company initiated a $100 million share repurchase program as its stock price remains beaten-down in the wake of continuing short-seller attacks on the company's credibility and loan activities.
Let's peel back the layers on the company's financial results. It may not answer all of the questions raised by short-sellers (most of which are decidedly dubious and only meant to create fear and uncertainty) but it will give you a better understanding of how the company is growing and where its financial results are coming from, and some clarity on how much risk its loan portfolio really entails. (Hint: much less than short-sellers would have you think).
[....]
To read on click the link;
http://www.nasdaq.com/article/bofi-holding-inc-eating-short-sellers-lunch-with-another-huge-quarter-cm613817
Marker:
Bofi Holding, Inc. (BOFI)
$17.78 up 0.16 (0.91%)
Volume: 1,589,768
There is no "vote" as far as your interest are concerned. The POR essentially surrenders your ownership and any claims in the company's assets.
You are the debtor when you own common equity in a company...you have no voice when you can't pay your bills. Your company is insolvent and your future as a debtor is totally up to your creditors wishes.
The Creditors will take possession of the company and issue themselves new shares in lieu of debt payment...and the old shares will be cancelled.
I don't expect you to like it but that is the reality.
Make sense?
IF they purchase at 'today's prices', and then vote as to NOT CANCEL Common, they stand to make a FORTUNE. No?
Sound plausible?
Gastar Exploration Inc. Prices Upsized Offering of Common Stock
Date : 05/12/2016 @ 8:24AM
Source : PR Newswire (US)
Stock : Gastar Exploration (GST)
Quote : $0.9499 0.0298 (3.24%) @ 2:52PM
HOUSTON, May 12, 2016 /PRNewswire/ -- Gastar Exploration Inc. ("Gastar") (NYSE MKT: GST) announced today that it has priced a public offering of 50,000,000 shares of its common stock at a price to the public of $0.95 per share pursuant to an effective shelf registration statement previously filed with the Securities and Exchange Commission (the "SEC"). The offering was upsized from the previously announced offering of 40,000,000 shares of common stock. Gastar has also granted the underwriters a 30-day option to purchase up to an additional 7,500,000 shares of common stock. Gastar expects to receive net proceeds of approximately $44.6 million (or approximately $51.4 million if the underwriters exercise their option to purchase additional shares), after deducting estimated fees and expenses (including underwriter discounts and commissions).
Gastar intends to use the net proceeds from the offering for general corporate purposes, including funding an expanded drilling program on its STACK Play acreage in Oklahoma. Gastar expects the offering to close on May 17, 2016, subject to customary closing conditions.
[....]
http://ih.advfn.com/p.php?pid=nmona&article=71452953
* I hope two things are accomplished: 1)The offering is 100% taken advantage of and 2) $44.6MM is enough $$ to sustain them through what is certain to be the new "norm" in the price of crude. IMO the days of $100 @ bbl oil are in the rear view mirror not to be seen again.