(1) Bank's accounting was intentionally messed up, so it couldn't file timely reports and the stock was delisted from NASDAQ. Once delisted, the bank qualified for private TARP, so it didn't need to issue warrants to the government - look at what TOWN and MNRK paid to cash in their warrants and private TARP for HBKS was a nice savings.
(2) HBKS got money from the city to build Ocean View branch. Now they can sell the branch and keep the money.
Ummmm....Lets get one thing straight. HBKS owes the governenment some serious cash & MNRK is now all paid up. HBKS is paying dividends to the government while not paying back any of the principal...ugh!!
A report stated....."But $2.7 billion out of SBLF's $4 billion in capital went to 137 banks that were TARP recipients. These banks used $2.1 billion of their SBLF capital to pay back their TARP debts, so they could escape the program's stigma and restrictions, SUCH AS CAPS ON EXECUTIVE COMPENSATION.."
So much for using SBLF as it was intended, instead, as stated above, "they could escape the program's stigma and restrictions, SUCH AS CAPS ON EXECUTIVE COMPENSATION". It's why there has been so many reports/hearings on this issue as of late..
So lets review the timeline for HBKS..:
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%!!!!!