The bank receive a consent order in December 2010. Then another on in August 2012.
The order mainly centered around capital adequacy, requiring it to shore up t-1 to 9% and total core to 13%. This may require additional $32 million just to satisfy the regulators.
The bank is still losing about a million per quarter. Combined with such weak condition, I would normally not be interested. However, core earning before credit related cost/losses are rather strong and credit only grudgingly improved. Operation wise, it could possibly succeed in the race against charge offs. If not for the consent orders, I might be interested.
At this market cap and with such small insider ownership, management would be more concerned with their jobs. Selling out to would-be new master is nor unfathomable.
PS I assume it did not take part in TARP. Let me know if I am wrong. Thanks.
Don't most high level executives have golden parachutes? I know smaller banks that certainly do. I would assume if they make $250k a year or so, each would get at least a year's salary along with some options that would vest. They would go out a hero and be much more "hireable" in the future. I agree their jobs at acfc are history as well they should be...