Betting on SEC Deregistration: Add .03 to Earnings
Virginia Heritage Bank just did it. If Heritage deregisters, it would be a positive ... SEC registration seems like a waste of money ... the stock doesn't trade much anyway. How can you have a banking attorney as CEO and not be all over this? (HBKS only has about 1,000 shareholders.)
"TYSONS CORNER, Va.--(BUSINESS WIRE)-- Virginia Heritage Bank (VGBK) has opted to deregister its common stock under the Securities and Exchange Act of 1934 by taking advantage of the recently passed Jumpstart Our Business Startups Act (the “JOBS Act”). The JOBS Act raises the threshold for requiring banks and bank holding companies to register with the Securities and Exchange Commission to 2,000 shareholders of record and also increases the threshold under which banks and bank holding companies are permitted to deregister from the Exchange Act from 300 to 1,200 shareholders of record. The deregistration will be effective 90 days after the Bank files its Form 15. The Bank expects its filing requirements with the Board of Governors of the Federal Reserve System to end during the third quarter of 2012. The Bank expects to significantly reduce its costs for legal, audit and other costs related to complying with the Exchange Act, estimating annual savings between $0.02 and $0.03 per share, while allowing senior management to focus more on day-to-day management of the core operations of the Bank. Virginia Heritage Bank remains committed to the highest quality of financial reporting and will leave in place its existing corporate governance structures, its internal and external audit processes, and its shareholder communication efforts. The Bank’s common stock will also continue to trade on the Over-the-Counter Bulletin Board under the same symbol (VGBK). Virginia Heritage Bank follows 61 other banks, including 13 in Virginia, that have filed to deregister their common stock and suspend securities reporting requirements."