Nearly a year and a half after a $35 million capital raise, Jacksonville Bancorp Inc. plans to raise another $35 million to $40 million by this summer in order to do a bulk sale of most of its nonperforming loans worth about $50 million.
Tony Plath, an associate professor of finance at the University of North Carolina Charlotte, said it would be difficult to persuade new investors to invest in Jacksonville Bancorp this time around. “If anyone is likely to place more capital in the franchise, it’s likely to be CapGen, since they have the most to lose here if the bank is recapitalized by another investor group.”
Hall expects at least 75 percent of the investment to come from insiders, such as people on the company’s board of directors, institutional investors and CapGen.
How do you justify this "information"? As a starting point, at best you seem to be misquoting something you may have heard because your numbers are not accurate. They executed a $50m capital raise, not $35m. You don't raise capital to sell asstes unless they are carried way over true value and you would have to take a significant write down. They already took over $17m in write-downs/charge-offs in the 4th quarter and increased reserves to $21m. As of YE2012, they only have $27m in Non-performers left ($22.7m Non-accruals and $4.4m restrustings), so it's "non-performing loans worth about $50m" is overstated by double. If you don't really know anything about the company, why post?