A lot not to like here....including TARP II & the 7.8M they owe the Treasury....
While the SBLF was intended to incentivize bank small-business lending, 24 former TARP banks have not increased their lending, and the remaining former TARP banks have increased lending by $1.13 for each SBLF dollar they received, the report said.
"By comparison, banks that did not participate in TARP but received SBLF funding have increased small-business lending by more than three times that amount--$3.45 for each $1 in SBLF funds," SIGTARP added.
Of the $30 billion in taxpayer-funded SBLF money, banks didn't even make use of most of it. But many of the banks that did participate in SBLF used that bailout money to pay off another bailout," Ryan Donovan, CUNA senior vice president of legislative affairs, noted Friday.
Market Cap of 29.5 M, owes the Treasury 7.8M (TARP II)
Until the $7.8M is paid back, HBKS will continue to pay interest......meanwhile, common shareholders will have to understand that the Treasury (preferred shares) comes first with any sort of liquidation.
"...such as caps on executive compensation..".............Hmmmmmmmmmmmmm
Treasury Site lists all the banks involved in this program by state. Oh look, there's HBKS! Someday this will all have to be paid back, $7.8M......Glad MNRK doesn't have this albatross hanging around their neck!!!!
REPAYMENT
After receiving capital, can my institution exit the Small Business Lending Fund at any time?
Yes. Subject to the approval of your regulator, your institution can exit the Small Business Lending Fund at any time simply by repaying the funding provided along with any accrued dividends. There is no prepayment penalty.
If your institution wishes to repay its SBLF funding in partial payments, each partial payment must be at least 25% of the original funding amount.
4/9/13 - For many banks, the Small Business Lending Fund was nothing more than a way to get out of the Troubled Asset Relief Program.
That's the conclusion of the federal government's special inspector general for the TARP program, Christy Romero, who analyzed how community banks used SBLF capital.
The program was created by Congress to increase lending to small businesses by providing banks with cheap capital.
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
The 2012 10-K really tells it like it is......Bottom line, in AUG/2011 HBKS simultaneously paid-off the remaining TARP balance ($7.4M) buy participating in the Small Business Loan Fund Program and issuing 7,800 shares of preferred stock (worth 7.8M) to the Treasury.........WOW, didn't know that until now.
Can't believe the spread is growing so quickly.
And deploying that capital to make itself bigger, better, & stronger to endure the ebb and flow of the banking industry.
Not good.....And not impressed.
Vikram Pandit, the former CEO of Citigroup Inc., earned total compensation of a $1 in 2010 after the financial crisis fueled losses in the previous two years...........
**down 35% since DEC/2004
Charts don't lie.
HBKS retained the law firm of Willcox & Savage, P.C. in 2012 in connection with certain
legal matters, and we expect to continue to do so in the future. Ross C. Reeves, a director of the Company, is an attorney (partner) with Willcox & Savage, P.C. The Company paid fees of $159,000 to the firm during 2012.
Senior management would be the first to go if I was taking over this company in a buyout and would in fact make that part of the deal.......BUT who would buy this company based on the section within the 2012 10-K titled "Payments Upon Termination of Employment or Change in Control"?????
Think about it; the stock is down 35% since DEC/2014, net income has tanked the last 2 Qs, branches are being shut down, etc., and I would have to pay this guy 400K a year through 2018??
If I were a stockholder, this would make me sick to my stomach!
He should do the noble thing and offer to only get a salary of a dollar for 2013, as some do on Wall Street when their company disappoints.
MNRK is now about 4 times the size of HBKS