I agree this is true for ABNJ, but each fact pattern is unique as to whether OTS will grant a waiver. That's why I said "under special circumstances". Like I said earlier, nothing is ever a "slam dunk" with the OTS. That's why I challenged the posts that say the OTS "rubber stamps" waivers for acquisitions within three years of converting. For every situation you can find and approval, you can find a denial.
I know for a fact that there have been waivers granted for certain institutions in the past few years when the trading price got below $10. One example - PBIP completed an offering in March 2005, stock slipped under $9.00 and stock repurchase was approved May 2005. Check out the Yahoo one year chart to see when this happened, and look at the press releases to confirm.
Going back several years, Trenton Savings Bank completed 2nd step, traded down, was very cash rich from the 2nd step completion, and it was gobbled up by Sovereign within months of 2nd step completion. This is all from memory, please, but I think I am right.
jjlebuc_99 - "The OTS waiver to buy back shares before one year is done from time to time under special circumstances, such as when a company's stock price going below the $10 offering price..."
As you know, ABNJ completed 2nd step in 9/05, the stock traded below offering price of $10, the bank requested permission to buy back 5 percent and the permission was denied. The stock is still trading under $10/
Look......First of all on page 147 it says "MAY PROHIBIT"...That always leaves the door open for a potential friendly merger. It does NOT say "will prohibit"....Second of all without telling you the bank I worked for....It happened to our bank....So lets just put this argument to sleep and move on.
Show me one merger that happened before the three year period.
"The OTS is pretty flexible" - Huh? You're kidding right?
The OTS waiver to buy back shares before one year is done from time to time under special circumstances, such as when a company's stock price going below the $10 offering price or, in the case of HCBK having to raise $4 billion with no place to really put it.
I'm not going to argue with you. You were wrong with your statements about the OTS (see the prospectus), and you are wrong now. If you are going to make such statements, back them up instead of giving conjecture.
End of story.
The question is when did the OTS not approve a merger during the three year period following a conversion??
The OTS is pretty flexable and the HCBK buyback in the first year is a perfect example.
Hey, I am into this stock at $5 per share based on pre split IPO. I bought a ton of it and wish I had bought more. Its the best performer in my portfolio and I get a nice dividend check each quarter. The only other bank stock that performed nearly this well is Chase but I bought that at $20 five years ago. It was a big risk back then. Hang on to this one!
Thanks for the support on this. I just got back from a week on vacation and didn't have access to the prospectus to prove my point, but for those who do have a prospectus, it's pretty clear on p. 147 as you said. This has common knowledge not just for this deal but for all conversions over the years.
I'm not here to get in a pissing contest about who's right and wrong, I just saw some misinformation in an earlier post and tried to correct it for the group.
fyi - for those who still don't agree, name the last time the OTS granted a waiver for a sale before three years from conversion date. Doesn't happen.
Here's to a strong 06 for HCBK!
Thanks and happy holidays,