Coast National Bank Highlights: (or Lowlights depending on your point of view)

Total assets at December 31, 2013 were $120.0 million, or 6.9% higher compared to $112.2 million at December 31, 2012. Total deposits increased to $111.6 million or 6.7% at year-end 2013 compared to $104.7 million at year-end 2012. Net loans were $64.4 million, down 8.7% at December 31, 2013 compared to $70.6 million at December 31, 2012. The decline in loans reflects the aggressive work in the resolution of troubled loan assets. Non-performing assets were $2.4 million at December 31, 2013 compared to $3.6 million at December 31, 2012.

In the fourth quarter, the bank posted a reverse provision for loan losses of $1.2 million, which reduced the Allowance for Loan Losses from 3.76% of gross loans outstanding at September 30, 2013 to 2.45% at December 31, 2013. At this level, the Allowance for Loan Losses is adequate in light of the bank's low level of non-performing loans of $1.0 million compared to $1.9 million at December 31, 2012. Deposits ending December 31, 2013 increased from prior year by $7.1 million or 6.7%. Core deposits represent 93% of total deposits and demand deposits representing 36% of total deposits. The bank continues to drive a strong core
customer base together with low cost of deposits averaging .22%, reduced from .33% in 2012.

At December 31, 2013 the bank's Tier I leverage ratio was 6.8% compared to 5.2% one year ago. Its total risk-based capital ratio was 12.9% at December 31, 2013 compared to 11.5% at December 31, 2012. Although not in compliance with the Tier I leverage ratio of 9.0% requirement under its Consent Order, it is considered to be "Well Capitalized."

Coast Bancorp Highlights:

Coast Bancorp reported net profits of $806,000 or $0.95 per basic and diluted share for the year ended December 31, 2013 compared to a loss of $457,000 or $0.54 per basic and diluted share for 2012. Total stockholder's equity continues to reflect a deficit of $868,200, an improvement of 46% over 2012. Total consolidated assets were $120.3 million at December 31, 2013 compared to $112.5 million at December 31, 2012. Total consolidated liabilities of $121.1 million were centered in total deposits held in the bank of $111.6 million and Junior Subordinated Debt Securities of $7.2 million due in 2027, as well as Accrued and unpaid Dividends on these debt securities of $2.3 million which is due June 2014 in order to avoid a default.

The board of directors of the company continues to explore a capital raise. New capital will be utilized to satisfy thepayment of unpaid dividends on the debt securities due by June 2014. Additionally, a portion of the proceeds will be invested into the subsidiary bank to supplement current capital levels and bring the Tier 1 Leverage ratio in excess of 9.0%, in satisfaction of required capital levels by the regulator.

http://www.snl.com/IRWebLinkX/corporateprofile.aspx?iid=4065986

* I do not hold shares of CTBP at this time nor do I plan to anytime soon. I do however want to investigate the subordinated debt accrued & unpaid dividend situation.

Marker:
Coast Bancorp (QB) (CTBP)
$2.00 0.0 (0.00%)
Volume: 0

Book Value: $12.02

Price / Book: 36.87%

http://www.snl.com/irweblinkx/stockinfo.aspx?iid=4050540

Marker:
M&f Bancorp, Inc. (Q (MFBP)
$4.43 down -0.01 (-0.23%)
Volume: 195

No worries free bee

Sometimes they're called a Backstop Purchaser too.

Warren Buffett (actually BRK.A) was the backstop investor for USG.

http://www.investopedia.com/terms/b/backstop_purchaser.asp

"Crash"? No.

Go down in pps? Sure. But that's to be expected and the people buying this know full well that the pps will fall once the offering gets underway.

The trading activity since the announcement of the rights offering may cause some head scratching but ever since the announcement was made this has been what I would call a picture perfect lead up to a highly successful rights offering.

What does this rights offering have that many others don't? A backstop investor. And I think that's why we've seen superb investor interest.

Investors aren't here to flip the stock...these are tight hands buying this and they're very determined to get as many rights to buy more @ $1 as possible.

Marker:
Four Oaks Fincorp, I (FOFN)
$2.73 down -0.02 (-0.73%)
Volume: 14,660

*stock hit a high of $3 earlier in the session.

That's a great start for 2014!

Doubtful the bank can duplicate that .46 eps for 3 more qtrs only because of where the extra earnings were generated from but if they can do even half that [.23], which is very doable, that would be an annualized EPS of $1.15.

Banks should sell at a P/E of 10

10 X $1.15 = $11.50

Todays Market value is: $5.15

We have an $11.50 bank selling for $5.15....where else can you buy an excellent, transparent, well managed, regulated and profitable business for < 50 cents on the dollar!

Can you spell - Low P/E...value found!

Marker:
Greer Bancshares, In (GRBS)
$5.15 0.0 (0.00%)
Volume: 0

Success has its best odds when investors exercise their full rights.

Questions Over Goldman Deal as Investors Sit in the Dark

By JESSE EISINGER
March 19, 2014

The “revolt of the Muppets” is heating up.

That’s how a Georgetown finance professor, James J. Angel, characterizes the combat by him and other investors over Goldman Sachs’s takeover of a hotel company a few years ago. (The phrase comes from a former Goldman employee, Greg Smith, who wrote that Goldman bankers referred to clients as the famous Henson puppets, a charge the bank disputed.)

The fight raises such a cornucopia of financial issues that it could shoulder an entire business school course. The holders of preferred stock in the company have taken to commenting to the Securities and Exchange Commission in outrage. Professor Angel accuses Goldman of multiple securities law violations. In essence, the question is: In these post-financial crisis days, what constitutes improper conflicts of interest?

First, some back story (and a friendly warning to readers: Goldman plays more roles in this than Joanne Woodward in “The Three Faces of Eve.”)

In 2007, a Goldman private equity fund called Whitehall took a company that runs franchised motels, like Residence Inn, private in a $2.2 billion transaction. It renamed the company W2007 Grace Acquisition. A Goldman entity, Goldman Sachs Mortgage Company, was the main lender for the leveraged buyout. Grace is run by current Goldman employees.

Goldman did not buy the publicly traded preferred shares, however. Instead, Grace went “dark,” as Floyd Norris explained last year. That meant it no longer filed financials with the Securities and Exchange Commission, a move allowed for companies with fewer than 300 shareholders. Grace delisted from the New York Stock Exchange and stopped paying dividends. It took other steps to make it difficult for anyone, including the preferred holders, to get any information about the company. Shareholders had to request the financials from the company and, at one point, had to pay 10 cents a page for the privilege of finding out how their investment was doing. They also had to sign a nondisclosure agreement.

All of this made it onerous for a shareholder to sell the stock to another investor. Not surprisingly, the preferred shares plummeted in value. They had a value of $25 a share, but sank to a low of 5 cents. (The real estate slump and the dividend cessation probably accelerated the drop, but the opacity surely hurt, too.)

In 2012 and 2013, a mysterious entity named PFD Holdings started buying those battered-down preferred shares. In 2012, PFD was paying $3 to a little more than $5 a share. Soon after, the preferred doubled in price, and now the shares trade at about $12. As of its last announcement, PFD owns 58 percent of the preferred shares. Nice trade!

So, what is PFD Holdings? Few outsiders really know because there’s little information out there about PFD. In Grace’s news releases, the company calls it a “sister company.” In other words, Goldman is ultimately behind PFD. I asked a former Goldman executive. He hadn’t heard of it but jokingly suggested the initials stood for Pretty Fishy and Dodgy. Well, in truth he used another “F” word, but you get the idea.

A Goldman spokeswoman wrote to me that “PFD acquired those shares in two privately negotiated transactions from two groups of shareholders who approached us to sell. Any assertion we acted inappropriately is unfounded.” She added, “The claims made by the preferred shareholders are without merit. They are a matter of ongoing litigation and we are defending ourselves vigorously. We have no further comment at this time.”

If all Goldman had done was take steps to suppress information about the shares to snap them up on the cheap, that might have been troubling enough. But just wait, there’s more.

For one, Grace has not filled spots for independent directors on its board. Grace has announced meetings to hold votes on those directors, but then said the meetings failed to reach quorums. In the latest attempt last August, Grace said it was delaying yet another special meeting to vote for seats. This time, the issue was that the mysterious PFD had told the company “of its intention to consider a tender offer“ for the remaining shares it did not own “later in 2013,” according to a Grace news release.

That was good timing because this one may just have reached a quorum, given all the angry preferred holders. And then, guess what? No tender offer materialized in 2013, and hasn’t yet.

Here’s another issue: In 2009, Goldman Sachs Mortgage forgave $545 million in Whitehall’s debt, receiving mainly an option to buy control of about 80 percent of most of Grace’s hotels. Grace was in trouble, and this may have saved the company.

In 2012, Goldman Sachs Mortgage sold that option back to Whitehall for $175 million. Were these deals, in which Goldman negotiated with Goldman, fair? There does not appear to have been any independent, third-party voices involved (Goldman had ceased to be the controlling lender in 2008 and says that Whitehall’s outside investors approved the 2009 transaction). The end result of these transactions is that Goldman’s Whitehall appears to have ended up recreating its ownership in most of the hotels at a cheap price. Also, some preferred holders fear their interest in the company has been subordinated to that of Goldman’s private equity fund.

So where does the Muppet Revolt stand? Grace may have to start making its financials public again, which could bring out more detail about Goldman’s various dealings with itself. An investment adviser from Wedbush Securities requested a shareholder list from the end of the year and tallied them up. In a letter he sent to the S.E.C., he says he counted 418 shareholders of record. That would be enough to revive the requirement to file financials.

Now we are in what Professor Angel calls the “Florida vote-counting” stage, trying to determine who should count as a “shareholder,” with Goldman’s lawyers battling against the preferred holders.

Another issue — I warned you that I was packing an entire semester into one column — is how this all comports with the Volcker Rule. Under the rule, banks are not allowed to own more than 3 percent of a private equity firm. They are not allowed to speculate in securities. But there is a merchant banking exemption that allows banks to take over companies directly on a temporary basis. Is PFD permitted by the Volcker Rule? It might be helpful if some regulator asked some pointed questions.

Speaking of which, where is the S.E.C. in all this? So far, the agency hasn’t been heard from on the question of how many shareholders there are or in response to any of the allegations from the preferred holders.

When deals like this go down, I feel like we are nation of Jake Gitteses, watching big bank deals with incomprehension. In “Chinatown,” the private detective asks the wealthy baron Noah Cross: “Why are you doing it? How much better can you eat? What could you buy that you can’t already afford?”

The scary thing about this Grace deal is that the money is so small (well, relative to Goldman, at least). The preferred shares amounted to about $146 million initially. It’s almost as if Goldman does it because it can.

http://dealbook.nytimes.com/2014/03/19/questions-over-goldman-deal-as-investors-sit-in-the-dark/?_php=true&_type=blogs&_r=0

Marker:
W2007 Grace Acquisit (WGCBP)
$17.25 0.0 (0.00%)
Volume: 0

Supertel Hospitality Announces Record Date for Distribution of Subscription Rights

Date : 04/14/2014 @ 5:06PM
Source : Marketwired
Stock : Supertel Hospitality, Inc. (MM) (SPPR)
Quote : $1.73 -0.08 (-4.42%) @ 5:20PM

NORFOLK, NE--(Marketwired - Apr 14, 2014) - Supertel Hospitality, Inc. (NASDAQ: SPPR), a real estate investment trust (REIT), today announced it has set the close of business on April 24, 2014 as the record date (the "Record Date") for the distribution of subscription rights for common stock of Supertel. Each subscription right will entitle its holder to purchase one share of common stock of Supertel. Supertel is issuing at no charge to the holders of its common stock and 6.25% Series C Cumulative Convertible Preferred Stock, or the Series C Preferred Stock, transferable subscription rights to purchase shares of common stock of Supertel. Each holder of common stock will receive one subscription right for each full share of common stock owned by that holder as of the close of business on the Record Date. The holder of the Series C Preferred Stock will receive 3,750,000 subscription rights, equal to the number of shares of common stock into which the Series C Preferred Stock may be converted as of the Record Date. Supertel presently expects to distribute the subscription rights to its shareholders as soon as practicable following the Record Date. Supertel will announce additional information regarding the terms of the subscription rights when the information is available.

[....]

http://ih.advfn.com/p.php?pid=nmona&article=61843577

Marker:
Supertel Hospitality (SPPR)
$1.73 down -0.08 (-4.42%)
Volume: 21,016

Annual Report (10-k)

Date : 03/31/2014 @ 5:05PM
Source : Edgar (US Regulatory)
Stock : Citizens Bancshares Corp. (QB) (CZBS)
Quote : $7.75 0.0 (0.00%) @ 9:30AM

[....]

Stockholders’ equity: $46,308,000

O/S is: 2,292,728

Book value is: $16.06

<page 40>

http://ih.advfn.com/p.php?pid=nmona&article=61663422

Market value today is: $7.75

CZBS is selling at 48% of book value.

Marker:
Citizens Bancshares (CZBS)
$7.75 0.0 (0.00%)
Volume: 0

Book value per common share: $ 10.21

P/B is: 1.65

Banks like BBCN with > $5B in assets sell for over 2 X BV.

Marker:
Bbcn Bancorp, Inc. (BBCN)
$16.80 down -0.31 (-1.81%)
Volume: 223,830

I have no idea what regulatory limitations, if any, banks classified as CDFI's would encounter in M & A type situations.

Common sense tells me there would be significant regulation hurdles to consider before Bank A could acquire non-cdfi Bank B and still maintain their own CDFI status. Perhaps its no hurdle at all and the standard reg rules for M & A apply. But something tells me its not all that simple ...and its a fair statement to say the simplest thing to do would be for a CDFI bank to look for another CDFI bank when they've got M & A on their minds.

MFBP is a North Carolina chartered bank with $301MM in assets ...and CZBS is a Georgia chartered bank with $387MM in assets. Although these banks aren't neighbors they are both in the southern region of the country and together they would be in the neighborhood of a $688MM dollar bank... which is still small by many standards but large enough they would help each other out significantly. Ideally banks need to be at least $1 Billion in assets to withstand the newest round of compliance costs.

It does no good to guess 'who' might acquire 'who' when it comes to banks...these things rarely ever work out the way you think they might... but its still fun to play matchmaker while we wait.

Both of these banks are selling at a steep discount to book value.

FORM S-1 REGISTRATION STATEMENT

FOUR OAKS FINCORP, INC.

Common Stock Underlying Subscription Rights to Purchase up to 26,557,977 Shares of Common Stock

We are distributing, at no charge, to holders of our common stock, par value $1.00 per share, non-transferable subscription rights to purchase up to an aggregate of 26,557,977 shares of our common stock, which we refer to as the rights offering. You will receive one subscription right for each share of common stock you own as of 5:00 p.m., Eastern Time, on [?], 2014. Each subscription right will entitle you, as a holder of our common stock, to purchase three shares of common stock at a subscription price of $1.00 per share, which we refer to as the basic subscription privilege.

If you fully exercise your basic subscription privilege, you will not experience any dilution in the percentage of our outstanding shares of common stock that you own immediately after the completion of the offering. You may also subscribe for additional shares, which we refer to as the oversubscription privilege, for pro rata allocation in the event that not all available shares are purchased pursuant to the shareholders’ basic subscription privilege or by the standby investor (described below). However, the oversubscription privilege will only be offered for an aggregate number of shares that, when combined with the number of shares purchased pursuant to the shareholders’ basic subscription privilege and by the standby investor, does not exceed 24,000,000 shares. If we accept your subscription pursuant to your oversubscription privilege, then in all circumstances the percentage of our outstanding shares that you own immediately after the offering will be higher than it was before the offering. Purchases of shares pursuant to the rights offering are also subject to certain other limitations described in this prospectus.

Subscription rights will expire if they are not exercised by 5:00 p.m., Eastern Time, on [?], 2014, unless we extend the rights offering period. You should carefully consider whether to exercise your subscription rights before the expiration of the rights offering. All exercises of subscription rights are irrevocable. Our board of directors makes no recommendation regarding your exercise of the subscription rights.

We reserve the right to amend or cancel the rights offering at any time. Registrar and Transfer Company, our subscription agent for the rights offering, will hold all funds it receives in an escrow account until completion of the rights offering. If we cancel the rights offering, all subscription funds will be returned promptly, without interest or penalty.

To facilitate the rights offering, we have entered into a securities purchase agreement, or the Securities Purchase Agreement, with Kenneth R. Lehman, a private investor, whom we refer to as the standby investor. The standby investor has agreed to purchase from us, and we have agreed to sell to him, for $1.00 per share, the lesser of (i) 10,000,000 shares of common stock, (ii) if the rights offering is completed, all shares of common stock not purchased by shareholders exercising their basic subscription privilege, and (iii) the maximum number of shares that he may purchase without causing an “ownership change” under Section 382(g) of the Internal Revenue Code of 1986, as amended, or the Code (based on all shares of common stock outstanding at the completion of the offering). In addition, the Securities Purchase Agreement provides the standby investor a right of first refusal to purchase an additional 6,000,000 shares subject to the limitations outlined in clauses (ii) and (iii) above. We refer to the issuance to the standby investor as the standby offering, and we refer to the rights offering and the standby offering together as the offering.

[....]

http://ih.advfn.com/p.php?pid=nmona&article=61734946

*I like the fact this offering has a backstop investor.

Marker:
Four Oaks Fincorp, I (FOFN)
$2.14 up 0.04 (1.90%)
Volume: 6,445

Four Oaks Fincorp, Inc. Announces Rights Offering

Date : 03/26/2014 @ 8:45AM
Source: Business Wire
Stock : Four Oaks Fincorp, Inc. (QB) (FOFN)
Quote : $2.14 0.04 (1.90%) @ 5:00PM

Four Oaks Fincorp, Inc. (OTCBB: FOFN) (the “Company”), the holding company for Four Oaks Bank & Trust Company (the “Bank”), today announced that the Company intends to conduct a rights offering of up to approximately $26.6 million (the “Rights Offering”).

In the Rights Offering, the Company will distribute, at no charge, non-transferable subscription rights to its shareholders as of a future record date. For each share of common stock, $1.00 par value per share (the “Common Stock”), held as of the record date, a shareholder will receive a non-transferable right to purchase three shares of Common Stock at a subscription price of $1.00 per share (the “Basic Subscription Privilege”). Shareholders who exercise their Basic Subscription Privilege in full will have the opportunity to subscribe for additional shares in the event that not all available shares are purchased pursuant to the Basic Subscription Privilege or by Kenneth R. Lehman pursuant to the Securities Purchase Agreement, dated March 24, 2014, subject to certain limitations.

Subject to review of the registration statement to be filed with the Securities and Exchange Commission, the Company intends to commence the Rights Offering during the second quarter of 2014.

http://ih.advfn.com/p.php?pid=nmona&article=61594939

*I missed this announcement by 9 days.

Marker: 4/4/2014
Four Oaks Fincorp, I (FOFN)
$2.14 up 0.04 (1.90%)
Volume: 6,445

Hi James...consider your hand shook and thank you for sharing your insights in such detail with the board...you're an impressive young guy and a real thinker. Congrats on the MBA and we all wish you well with your career in banking.

In a perfect world our bank wouldn't have any TARP debts to repay...but its far from perfect and the bank eventually will have to face the repayment of its TARP loan. Its worth repeating for anyone else reading this that MFBP doesn't have the standard 5% for 5 years and 9% thereafter TARP terms that most every other banks across the country came under. MFBP has terms at 2% for 8 years which changes things a bit...and that's what you and I are discussing. To let you know where I stand on TARP I'm of the opinion that although TARP was a very unpopular gov't program it was something that had to done to meet a dire need. I'm not sure the average taxpayer really understands just how close to the abyss our banking system really was...and even though TARP went down like a bitter pill it still did its job and ultimately saved the day. My opinion on this was shaped by my friend and partner Enterprising Investor who is also an MBA with a career in banking, mortgage and finance.

GBExpress writes:

Annual Report (10-k)

Date :03/14/2014 @ 4:54PM
Source : Edgar (US Regulatory)
Stock : Atlantic Coast Financial Corp. (MM) (ACFC)
Quote : $4.12 -0.05 (-1.20%) @ 5:20PM

http://ih.advfn.com/p.php?pid=nmona&article=61463957

*The 10-K was out a couple weeks ago. Nothing really new to report.

O/S is 15,509,061
Equity is: $68.176MM

Marker eod:
Atlantic Coast Finan (ACFC)
$4.12 down -0.05 (-1.20%)
Volume: 26,327

Book value per share at December 31, 2013 was $2.71

http://ih.advfn.com/p.php?pid=nmona&article=61663391

MV today is: $2.10

Marker:
Four Oaks Fincorp, I (FOFN)
$2.10 down -0.04 (-1.87%)
Volume: 3,034

*I hold no shares of FOFN at this time.

Oh man.... I knew 10 minutes after I sent the post it was the Farmer's & Merchant bank out of Calif I wanted and not the one in Ohio.

FMBL is the blue ribbon pup in the bunch....thanx for spotting me on that EI ;)

Think of OTC banks as the finest and best homes in a modest neighborhood.

Its true higher risk and OTC companies go hand in hand...however when you'e talking about banks those generalities don't apply.

Banks are the most highly regulated industry on Wall St. Banks can't hide bad news like some of the other OTC companies can. When a bank says they have a dollar in the vault there will be an army of people there physically checking to see if there really is a dollar in the vault...and if it isn't they put the CEO under bright lights and ask why it's not there.

Even though OTC banks aren't under stricter exchange reporting rules many voluntarily offer the same information you would expect to see from a listed company. Some of the most respected and solid banks in the country are on the OTC. FMAO is a prime example.

I follow dozens of banks...the lions share are under $1 Billion in assets. With the exception of just a handful they all list on the OTC. Regulation and SEC compliance costs are more than they've ever been in banking history. In fact the combined higher costs of compliance (Reg and or SEC) is reason #1 why banks are being forced to consider consolidating asap. They simply can't absorb these rising compliance costs alone and thrive doing it for very long. Reg compliance is mandatory..banks don't have a choice if they want to particpate or not. Listing and the cost associated with it are a choice... and many choose not to spend the extra time or money..it doesn't add value..it's just an expense they can do without.

With the exception of a few I get every bit as much info I need as an investor from my OTC banks as I do from the listed ones.

Some OTC banks only put out a yearly report but you can still get the quarterly info you need from the FFIEC.

It's actually very common for smaller banks to be listed OTC. They save a substantial amount on compliance cost and still attract many of the institutional investors.

I'm not aware of any plans to list on another exchange...have you read something indicating they will or plan to?

FFIEC Report

FDIC Certificate # 35069 FRB District/ID_RSSD 12 / 2854494

SOUTH COUNTY BANK, NATIONAL ASSOCIATION ; RANCHO SANTA MARGARITA , CA

OCC Charter # 23801

County: ORANGE

Bank Holding Company Information:
FRB District / ID_RSSD 12 / 3188860
CALWEST BANCORP
RANCHO SANTA MARGARITA, CA

December 31, 2013

Uniform Bank Performance Report

https://cdr.ffiec.gov/public/Reports/UbprReport.aspx?rptCycleIds=76%2c72%2c67%2c63%2c58&rptid=283&idrssd=2854494&peerGroupType=&supplemental=

Marker:
Calwest Bancorp (QB) (CALW)
$1.01 0.0 (0.00%)
Volume: 25,800

You can almost feel big strategic moves ahead for SNBC as they put key players in place.

Sun Bancorp, Inc. Agrees To Hire Thomas M. O'Brien As President And Chief Executive Officer

[....]

"I will not only be joining Sun as its CEO but, more importantly, I will be joining as a significant shareholder. As a consequence, my interests will be closely aligned with the long term interests of all shareholders and my ambition will be to build the value for them that they so richly deserve."

[....]

http://ih.advfn.com/p.php?pid=nmona&article=61691761

Marker:
Sun Bancorp, Inc. (SNBC)
$3.88 up 0.39 (11.17%)
Volume: 447,137

*...big day!

O'Brien wins by default. why? Because what they're really debating is speed and they're calling it rigged.

...since when is taking advantage of speed not how the world works?

Are Olympians not rewarded for speed and strength? Don't we all desire to see our favorite football team get stronger and faster via the draft? Is Warren Buffetts' 'mind' an unfair advantage because he can conceptualize, interpret and arrive at good investments quicker than others have?

Even if every investor/trader on earth had the same computer and received info at the same exact nano-second in time would that level the playing field on Wall St? What if I blink and miss the move and everyone else didn't blink..is that fair? Should there be a blink rule to compensate? Where does this end? What if I'm a faster reader than the next guy and I'm able to absorb the news and execute a trade quicker based on my ability to read faster - do I have an unfair advantage?

Isn't HFT really just another form of being a "broker"?

Is the idea that there may be a "middleman" involved really all that foreign to our system of a free market? You can't buy a stick of gum when there isn't a middleman involved who got between the maker and the consumer for a piece of the action.

I'm willing to bet Mr. Market has a good answer for HFT without getting Uncle Sam involved.. which is exactly what will happen because of the stink this book will raise...and when it does Lord help us...that's when a relatively simple solution will become a collosal game of bureaucratic twister.

I'm opposed to HFT in theory...but in reality the cure is worse than the disease imo.

O'Brien wins.

Book Value over $5...but is this the next bank to fail?

It appears to be spinning out of control.

Assets, loans and deposits are all down significantly + troubled assets are enormous and still rising significantly = toxic combination.

http://banktracker.investigativereportingworkshop.org/banks/florida/fort-walton-beac/beach-community-bank/

Sept. 2013 financials:

https://www.beachcommunitybank.com/pdfs/StmtCond093013.pdf

Marker:
Beach Community Banc (BCBF)
$1.55 0.0 (0.00%)
Volume: 0

BFC Financial Corporation Reports Financial Results for the Fourth Quarter and Full Year, 2013

[....]

Under generally accepted accounting principles, the financial statements of the companies in which BFC holds a controlling interest, including BBX Capital and Bluegreen Corporation, are consolidated in the Company's financial statements.

[....]

About BBX Capital Corporation:

BBX Capital, a New York Stock Exchange listed company (NYSE: BBX), is involved in the acquisition, ownership and management of, and joint ventures and investments in real estate and real estate development projects as well as investments and management of middle market operating businesses. In addition, BBX Capital and its holding company, BFC Financial Corporation, have a 46% and 54% respective interest in Bluegreen Corporation; a vacation ownership company with more than 60 owned or managed resorts, 225,000 owners and 5,000 employees.

As of December 31, 2013, BBX Capital had consolidated total assets of $431.1 million, shareholders' equity of $302.4 million, and its book value per share was $19.00.

[....]

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=99797793

Marker EOD:
Bbx Capital Corporat (BBX)
$19.45 up 0.29 (1.51%)
Volume: 144,407

* less than 2 years ago in June of 2012 the stock was < $5.

BFC Financial Corporation Reports Financial Results for the Fourth Quarter and Full Year, 2013

Date : 03/17/2014 @ 5:41PM
Source : Marketwired
Stock : Bfc Financial Corp. (QB) (BFCF)
Quote : $3.74 0.11 (3.03%) @ 4:00PM

FORT LAUDERDALE, FL--(Marketwired - March 17, 2014) - BFC Financial Corporation ("BFC" or the "Company") (OTCQB: BFCF) reported financial results for the fourth quarter and full year ended December 31, 2013.

Full Year 2013

The Company reported net income attributable to BFC of $29.1 million, or $0.35 per diluted share, for the year ended December 31, 2013, compared to a net income attributable to BFC of $166.0 million, or $2.09 per diluted share, for the year ended December 31, 2012. Net income attributable to BFC for the year ended December 31, 2012 includes a $141.5 million gain from discontinued operations related to the sale of BankAtlantic by BBX Capital Corporation ("BBX Capital") (NYSE: BBX) during July 2012.

Fourth Quarter 2013

The Company reported net income attributable to BFC of $23.7 million, or $0.28 per diluted share, for the quarter ended December 31, 2013, compared to a net loss attributable to BFC of $(15.1) million, or $(0.19) per diluted share, for the quarter ended December 31, 2012.

As of December 31, 2013, BFC had consolidated total assets of $1.4 billion, total equity of $422.4 million, and its book value per share was $2.88.

Net income (loss) attributable to BFC is defined as net income (loss) after non-controlling interests. Under generally accepted accounting principles, the financial statements of the companies in which BFC holds a controlling interest, including BBX Capital and Bluegreen Corporation, are consolidated in the Company's financial statements. At December 31, 2013, BFC had an approximate 52% economic ownership interest in BBX Capital and an approximate 54% economic ownership interest in Woodbridge Holdings, LLC which owns 100% of Bluegreen Corporation and its subsidiaries.

More complete information relating to BFC and its financial results is contained in the Company's Annual Report on Form 10-K for the year ended December 31, 2013, which was filed with the SEC on March 17, 2014 and is available to view on the SEC's website, www.sec.gov, or on BFC's website, www.BFCFinancial.com.

About BFC Financial Corporation:

BFC (OTCQB: BFCF) is a holding company whose principal holdings include controlling interests in BBX Capital Corporation (NYSE: BBX) and Bluegreen Corporation.

As of December 31, 2013, BFC had total consolidated assets of approximately $1.4 billion, shareholders' equity attributable to BFC of approximately $239.4 million, and total consolidated equity of approximately $422.4 million. For more information, visit www.BFCFinancial.com.

About BBX Capital Corporation:

BBX Capital, a New York Stock Exchange listed company (NYSE: BBX), is involved in the acquisition, ownership and management of, and joint ventures and investments in real estate and real estate development projects as well as investments and management of middle market operating businesses. In addition, BBX Capital and its holding company, BFC Financial Corporation, have a 46% and 54% respective interest in Bluegreen Corporation; a vacation ownership company with more than 60 owned or managed resorts, 225,000 owners and 5,000 employees.

As of December 31, 2013, BBX Capital had consolidated total assets of $431.1 million, shareholders' equity of $302.4 million, and its book value per share was $19.00.

BFC Contact Info:

Investor Relations:
Leo Hinkley, Managing Director, Investor Relations Officer
954-940-4994
Email: InvestorRelations@BFCFinancial.com

http://ih.advfn.com/p.php?pid=nmona&article=61484309

Marker EOD:
Bfc Financial Corp. (BFCF)
$3.74 up 0.11 (3.03%)
Volume: 80,648

Annual Report (10-k)

Date : 03/27/2014 @ 4:40PM
Source : Edgar (US Regulatory)
Stock : Talmer Bancorp, Inc. (TLMR)
Quote : $14.38 0.51 (3.68%) @ 1:11PM

[....]

The number of shares outstanding of the registrant's Class A common stock, par value $1.00 per share, as of March 27, 2014 was 69,962,461.

[....]

On April 30, 2010, we closed on a private placement of our common stock that raised $200.0 million from new investors. Also on April 30, 2010, Talmer Bank acquired certain of the assets and certain of the deposits of CF Bancorp, a Michigan chartered savings bank, from the FDIC, as receiver. Since then, Talmer Bank has completed three additional FDIC-assisted acquisitions of First Banking Center on November 19, 2010, People State Bank on February 11, 2011 and Community Central Bank on April 29, 2011.

On February 21, 2012, we closed on a private placement of our common stock consisting of an initial drawdown by us of approximately $21.0 million and commitments from investors for up to approximately $153.0 million of event driven capital at $8.00 per share. On December 27, 2012, we closed on the remaining $153.0 million of capital commitments from our investors, which was used to fund the acquisition of all of the outstanding common stock of First Place Bank, which closed on January 1, 2013.

As a result of our private placements and our acquisitions described below, we have transformed from a small community bank in Troy, Michigan to a much larger commercial bank. As of December 31, 2013, we had $3.0 billion in total loans. Of this amount, $1.9 billion, or 62.8%, consist of loans we acquired (all of which were adjusted to their estimated fair values at the time of acquisition), and $1.1 billion, or 37.2%, consist of loans we originated. In each of our FDIC-assisted acquisitions, we entered into loss share agreements with the FDIC that cover certain of the acquired assets, including 100% of the acquired loans (other than consumer loans with respect to our acquisition of First Banking Center, Peoples State Bank and Community Central Bank) and other real estate. As of December 31, 2013, of our $3.0 billion of total loans, $530.1 million, or 17.6%, are covered by loss share agreements with the FDIC.

[....]

As of December 31, 2013, our total assets were approximately $4.5 billion, our total loans were approximately $3.0 billion, our total deposits were approximately $3.6 billion and our total shareholders' equity was approximately $617.0 million. We are headquartered at 2301 West Big Beaver Rd., Suite 525, Troy, Michigan 48084.

On February 14, 2014, we completed the initial public offering of 15,555,555 shares of our common stock. Of the 15,555,555 shares sold, 3,703,703 shares were sold by us and 11,851,852 shares were sold by certain selling shareholders. In addition, on February 21, 2014, the selling shareholders sold an additional 2,333,333 shares of common stock to cover the exercise of the underwriters' over-allotment option. We received net proceeds of approximately $42.1 million from the offering, after deducting the underwriting discounts and commissions and estimated offering expenses. We did not receive any proceeds from the sale of shares by the selling shareholders.

[....]

Tangible book value per share: $9.12

<page 74>

[....]

Earnings per share (EPS): Basic $1.49

[....]

Stock Warrants

The Company has issued five different sets of stock warrants: 1) to seed capital investors in February 2010; 2) to an investor in relation to the April 2010 capital raise from private equity investors; 3) to the FDIC in relation to the Company's April 2010 acquisitions of CF Bancorp; 4) to an investor in relation to the Company's February 2012 capital raise from private equity investors and 5) to an investor in relation to the Company's December 2012 capital raise from private equity investors.

On February 10, 2010, 38,855 common stock warrants were issued to certain seed investors. These warrants have a strike price of $10.00 per share and expire April 28, 2017. These warrants have a feature that dictates that the warrants only become exercisable after an eligible capital transaction, which is either an initial public offering or a sale of the Company in which the stock of the Company is valued above certain threshold levels. These warrants were not issued concurrently with the issuance of stock and meeting the definition of a derivative under ASC 815-40 " Derivatives and Hedging—Contracts in Entity's Own Equity " (ASC 815-40), however, they fall under the scope exception which states that contracts issued that are both a) indexed to its own stock; and b) classified in stockholders' equity are not considered derivatives. The warrants were recorded at their fair value on the date of grant as a component of stockholder's equity. These warrants remain outstanding at December 31, 2013.

On April 30, 2010, 1,623,162 common stock warrants were issued to investment vehicles associated with an investor. The warrants have a strike price of $6.00 per share and a 10 year term. These warrants were issued concurrently with the issuance of stock to this investor and meet the definition of a derivative under ASC 815-40, however, they fall under the scope exception which states that contracts issued that are both a) indexed to its own stock; and b) classified in stockholders' equity are not

<page 210>


17. STOCK-BASED COMPENSATION AND STOCK WARRANTS (Continued)

considered derivatives. The warrants were recorded at their fair value on the date of grant as a component of stockholder's equity. These warrants remain outstanding at December 31, 2013.

On April 30, 2010, 390,000 common stock warrants were issued to the FDIC. These warrants have a strike price of $6.00 and a 10 year term. These warrants have a feature that allows settlement in cash and were issued as consideration paid to the FDIC for the purchase of assets of CF Bancorp. These warrants meet the definition of a liability due to the cash settlement feature and are recorded as such in the Consolidated Balance Sheets. The purchase accounting adjustments related to the CF Bancorp acquisition included an estimated present value of the potential cash settlement that may be paid to the FDIC of $2.9 million which was recorded in "FDIC warrants payable" in the Consolidated Balance Sheets. At each subsequent reporting period, the Company determined the potential cash settlement amount for these warrants and, to the extent that the present value of the potential cash settlement amount is greater than the initial contingent purchase accounting adjustment, the company would accrue additional expense to fully reflect the present value of the potential cash settlement amount. For the years ended December 31, 2013, 2012 and 2011, $219 thousand, $195 thousand and $144 thousand, respectively, was recognized as periodic amortization expense. For the years ended December 31, 2013, 2012 and 2011, $163 thousand, $326 thousand and $101 thousand were recognized as additional expense due to the change in potential cash settlement amount. At December 31, 2013, the Company's recorded balance of FDIC Warrants Payable was $4.1 million.

On February 21, 2012, 109,122 common stock warrants were issued to investment vehicles associated with an investor. The warrants have a strike price of $8.00 per share and a 10 year term. These warrants were issued concurrently with the issuance of stock to this investor and meet the definition of a derivative under ASC 815-40, however, they fall under the scope exception which states that contracts issued that are both a) indexed to its own stock; and b) classified in stockholders' equity are not considered derivatives. The warrants were recorded at their fair value on the date of grant as a component of stockholder's equity. These warrants remain outstanding at December 31, 2013.

On December 27, 2012, 797,132 common stock warrants were issued to investment vehicles associated with an investor. The warrants have a strike price of $8.00 per share and a 10 year term. These warrants were issued concurrently with the issuance of stock to this investor and meet the definition of a derivative under ASC 815-40, however, they fall under the scope exception which states that contracts issued that are both a) indexed to its own stock; and b) classified in stockholders' equity are not considered derivatives. The warrants were recorded at their fair value on the date of grant as a component of stockholder's equity. These warrants remain outstanding at December 31, 2013.

<page 211>

[....]

http://ih.advfn.com/p.php?pid=nmona&article=61621713

Marker: (mid-day)
Talmer Bancorp, Inc. (TLMR)
$14.5 up 0.63 (4.54%)
Volume: 378,349

*This 10K is a very good read and the blueprint on exactly how an agressive group of investors take a small bank and the steps they take to turn it into a much larger bank.

Yes. I'm not sure I would call HFT rigged trading...I think Lewis is trying to sell his book so he uses inflammatory words like that to attract attention.

I'm not sure how or if HFT can be fixed.

Rick Santelli is talking about it right now on CNBC. I value his opinion.

German finance ministry 'expects ECB rates to rise'

Berlin (AFP) - Experts at the German finance ministry expect the European Central Bank to raise key interest rates soon due to the economy picking up, a German news weekly said on Sunday, citing an internal document.

With the eurozone debt crisis increasingly fading and an improving economy, "an active contribution to the overcoming of the low interest policy is to be expected" from the ECB, Spiegel quoted the ministry document as saying.

That will lead to Germany having to pay more for its loans in a year's time than it currently does, according to the experts at Finance Minister Wolfgang Schaeuble's ministry.

The ECB has held its key interest rates at an all-time low of 0.25 percent since November and analysts do not expect a cut by the Frankfurt-based bank at its meeting this week.

http://news.yahoo.com/german-finance-ministry-expects-ecb-rates-rise-153722404.html

Marker:
Commerzbank (PC) (CRZBY)
$18.02 up 0.21 (1.18%)
Volume: 10,857

From Post #59
May 31, 2013;

Patriot National Ban (PNBK)
$1.3064 up 0.0214 (1.67%)
Volume: 3,500

*The financial situation remains the same. The bank is still bleeding heavily and lost just under ($7MM) in 2013. I have no postion in this bank.

http://banktracker.investigativereportingworkshop.org/banks/connecticut/stamford/patriot-national-bank/

The bank received the $9.993M TARP money on Jan. 30th, 2009 and the interest rate was set at 5% for 5 years...that deal ended Jan. 30th of 2014 and when it did the interest rate jumped to 9%.

TARP was a savior for that 5 years and at 5% it was relatively cheap money ...but at 9% that savior becomes a bit of a millstone around the neck of the bank.

I can see why they're motivated to pay down their TARP debt.

thanx for the info 1center!

Marker: (Mid-day)
Greer Bancshares, In (GRBS)
$5.00 up 0.1 (2.04%)
Volume: 100

Talmer Bancorp, Inc. Announces Closing of Over-Allotment Option

Company Release - 02/21/2014 16:40

TROY, Mich., Feb. 21, 2014 /PRNewswire/ -- Talmer Bancorp, Inc. (the "Company") (NASDAQ: TLMR) today announced that the underwriters of its recent initial public offering of its Class A common stock have closed on the purchase of 2,333,333 shares from certain selling shareholders pursuant to the underwriters' over-allotment option granted in connection with the initial public offering, at a public offering price of $13.00 per share. The Company did not receive any proceeds from the sale of the shares by the selling shareholders.

https://www.snl.com/IRWebLinkX/corporateprofile.aspx?iid=4167896

A Wilbur Ross connection?

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=99526037

Talmer Bancorp prices IPO at between $12.50 to $14.50 per share

Jan 31 (Reuters) - Talmer Bancorp Inc, backed by billionaire investor Wilbur Ross, priced its initial public offering of common shares at between $12.50 and $14.50 per share, valuing the company at up to $1 billion.

The offering of 15.6 million shares would raise up to $226 million.

Ross, who also serves on the board of Talmer, has a stake of more than 24 percent in the bank holding company through WL Ross & Co.

Manulife Asset Management (US) LLC and David Einhorn's hedge fund Greenlight Capital Inc are the other notable shareholders with a stake of more than 5 percent each in the company.

Talmer has three subsidiary banks - Talmer Bank and Trust, First Place Bank, and Talmer West Bank.

These banks operate through 94 branches in Michigan, Ohio, Indiana, Wisconsin, Illinois, Nevada and New Mexico and 13 lending offices located primarily in the Midwest.

Keefe, Bruyette & Woods and JP Morgan are underwriting IPO.

Net proceeds from the offering will be used to repay debt, Talmer said in a preliminary prospectus lodged with the U.S. Securities and Exchange Commission.

The company intends to list its common stock on the Nasdaq under the symbol "TLMR."

Talmer's net income rose to $86 million in the nine-month period ended Sept. 30, from $14.23 million a year earlier.

Net interest income, the difference between what a bank earns from loans and pays out for deposits, rose to $128.7 million from $72.2 million.

http://www.reuters.com/article/2014/01/31/talmer-ipo-idUSL3N0L53TI20140131?type=companyNews&feedType=RSS

Marker on this date:
Talmer Bancorp, Inc. (TLMR)
$13.82 up 0.06 (0.44%)
Volume: 321,999

From: Wednesday, 09/04/13 09:19:55 PM