Starting a New Insurance company and M/A move was not the Prudent timed approach for FMNB while the BOD / Mang. continue to forget the Ma/Pa investor that built this bank.
1 )It is a bad economical time. With understanding that: In the Mahoning Valley Car sales for August were the worst since 1983; The Hay Day (2-6 yrs. ago) of banks making morgage loans for 7 to 9% are gone and now those same loans are 4+ or 5+%. Naturally Profits are down and the Dividend is the first "Cut".
Yet over those same Hay Day years the BOD and Upper Management got raises and Bonuses;
Now I'm asking the Investors here?
Isn't it about time those same BOD / Upper Mang. also be included in the "Cuts" that all the rest of the employees and investors are experiencing? Why should they maintain their status of Pay as the rest take the brunt of the recession? Lots of retirees on fixed income that looked forward for a little suplimental income from those Dividends are now gone;
So I'm suggesting the Mang. take a little haircut also and get a 10-15% cut at the least.
>>We are distributing non-transferable rights to subscribe for and purchase up to common shares (maximum) to persons who owned our common shares as of the close of business on the record date, , 2010. You will receive the right to subscribe for one common share, at a subscription price of $ , for each common shares that you owned on , 2010. If you exercise all of your rights, you may also have the opportunity to purchase additional common shares at the same purchase price. There is no minimum number of rights that must be exercised in order for us to complete the rights offering. <<