They IPO'd in 2003 on the NASDAQ at $12 a share, with roughly $210M in assets and 1.6M common shares. A small cap growth stock, although they sold in 2007 just above their initial IPO asset value. I don't think they ever made it out of the small business mentality...
The FDIC filing looks like a slap on the hand: Get your Board straightened out; tighten up your loan ratios; get your audit and oversight up to snuff. Issues, I think, every transitioning small business has.
They were ordered to establish a compliance committee and implement changes, such as adding personnel to the BoD; hiring a CEO with commensurate skills (I assume one that could run a NASDAQ traded company), and a senior lending officer; and to acquire and maintain Tier 1 capital in the amount of 7.5% of total assets (and to maintain a risk ratio of 10%). And on...
I don't see anything criminal here. Just inexperienced, small time bankers. They sold the company to First Bank, 3 months after this was filed. I assume in part, to meet the Tier 1 capital requirements.
There's politics here: At the same time their primary customer goes belly up, defaulting on a majority of loans; they get hit with this FDIC order; forced compliance across the board, forced capital requirements the FDIC likely knew they couldn't obtain. I understand why they sold.
There's an article out there that says Toomey was hospitalized when this went down.
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