But can take care of themselves??
AUG/2011 - HBKS jumps all over SBLF for 7.8M and then simultaneously pays off the remaining TARP of 7.4M.
2012 executive compensation::::
CEO total compensation jumped 42%!!
CFO total compensation jumped 45%!!
Chief Lending Officer total compensation jumped 51%!!
Chief Banking Officer total compensation jumped 27%!!
I concur 110%. As one who had made a killing with MNRK & CSCD, you sure know when to hold them & when to fold them!!
That would be like MNRK and HBKS merging. You usually are not going to get a premium when two small banks merge. Need a larger acquiror.
I looked at their 10-K, did you see the section under "Payments Upon Termination of Employment or Change in Control"? Yikes.
Owes Uncle Sam $7.8 million. Currently paying interest on the loan without the pricipal getting knocked down one penny. I've documented before their tricky exit out of TARP and how their compensation then jumped significantly within months - if I remember correctly.
Speaking of that, these guys are getting paid quite handsomely for running a handful of branches and throwing their money in CDs. Life is grand, why sell?
Smart phones are getting amazingly cheap. It won't be long before the airlines say you need one as your boarding pass.
Bankers always have some pet phrase as to why branches aren't going away ... but what do you expect them to say. Think about it: Even the poor people use electronic cards for food stamps; green dot cards for debit. E-banking is an unstoppable force.
Banks big on branches are misjudging the future ... just like travel agents said the Internet wouldn't affect their business.
Less regulation for small banks and credit union tax exemption could end:
"Because they are nonprofit institutions, credit unions are exempt from federal income tax. That’s long been a sore spot for the banks, which now see a potential opportunity in tax reform legislation to challenge the exemption.
On its website, the American Bankers Association says, “As Congress examines the affordability of tax exemptions in the face of rising debt levels, it should target the credit union tax exemption, an anachronism whose need has long disappeared. Credit unions' tax exemption was originally linked to their mission to serve people of modest means. But there is evidence that the tax subsidy is going to individuals who clearly do not need subsidized financial services and benefits the largest credit unions.” So,the ABA concludes: “If credit unions want to act like banks, they should be taxed like banks. Plain and simple.”
That looks like a merger of equals, so no takeout premium ... HBKS is going to sell out to a bigger bank and say "here's the keys; we're out of here."
Seems to be typical type ratios for buyouts of small, community banks. Not much upside for HBKS, in my opinion.
I would theorize HBKS is having buyout talks, but the price isn't high enough. Good thing they have the running game to fall back on. Without SEC registration expenses, two dud branches, and higher SBLF rate, earnings ought to start ramping up soon.
HBKS wouldn't even have to do anything fancy like the other banks ... you know, convertible notes and preferred with high interest coupons and all that. Shareholders would just give them the money for more common.