Spartacus Season 3 - In a late filing of its 2009 annual report, troubled Tamalpais Bancorp, the parent company of San Rafael-based Tamalpais Bank, reported this week that it has failed to meet deadlines to increase capital imposed by federal regulators and warned that a regulatory takeover of the bank is a possibility.
"There can be no assurance that we will be able to arrange for sufficient liquidity or to raise additional capital in time to satisfy regulatory requirements and meet our obligations as they come due," the annual report stated.
The report goes on to say that regulators may take further action "including assumption of control of Tamalpais Bank, to protect the interests of depositors insured by the FDIC."
The bank is under intense pressure from the Federal Deposit Insurance Corp. to improve its capitalization. On Feb. 19, the FDIC told the bank to either improve its capitalization by issuing new stock or find an institution that will buy the bank. Under this "prompt corrective action directive," the bank had until March 21 to comply with the order.
A spokesman for the bank could not be reached for comment Friday.
The bank announced in February that it lost $37.6 million, or $9.83 per share, in fiscal 2009, compared with a profit of $4.8 million, or $1.26 per share, in 2008. But the bank told the Securities and Exchange Commission on April 1 that it had been unable to file its 2009 annual report due to "delays in resolving certain disclosures." The bank filed the annual.
report with the SEC on Thursday.
The annual report discloses that the bank's independent registered public accountants expressed substantial doubt about the bank's ability to continue as a going concern in its audit report for fiscal 2009.
"If we cannot continue as a going concern, our shareholders will lose some or all of their investment in the company," the report noted.
On March 12, the NASDAQ stock market notified the bank it faced the possible delisting of its stock because it had closed below $1 per share for 30 consecutive days. On Friday, the stock closed at 49 cents a share, down a cent. As of Dec. 31, Tamalpais Bank had 72 full-time employees.
The annual report disclosed that Tamalpais Bank has been in default on $5.7 million worth of loans to Pacific Coast Bankers Bank since Sept. 3. The report stated that the bank has the option to foreclose on the collateral securing the loans, which includes the bank's stock. The annual report also disclosed that the bank is in "technical default" to the Federal Home Loan Bank of San Francisco, to which it owes $119 million.
The annual report stated that the bank's nonperforming assets totaled $46.9 million at the end of 2009, up from $17.1 million at the end of 2008.
According to the annual report, "Small business owners and investors have seen reduced revenues due to declining economic activity, and rising unemployment has caused some borrowers to become delinquent on loan payments. Additionally, the value of land, construction and commercial real estate loans have been severely impacted by the decline in occupancy rates, rental lease rates and property values."
"There can be no assurance that we will be able to arrange for sufficient liquidity or to raise additional capital in time to satisfy regulatory requirements and meet our obligations as they come due," the annual report stated.
The report goes on to say that regulators may take further action "including assumption of control of Tamalpais Bank, to protect the interests of depositors insured by the FDIC."
The bank is under intense pressure from the Federal Deposit Insurance Corp. to improve its capitalization. On Feb. 19, the FDIC told the bank to either improve its capitalization by issuing new stock or find an institution that will buy the bank. Under this "prompt corrective action directive," the bank had until March 21 to comply with the order.
A spokesman for the bank could not be reached for comment Friday.
The bank announced in February that it lost $37.6 million, or $9.83 per share, in fiscal 2009, compared with a profit of $4.8 million, or $1.26 per share, in 2008. But the bank told the Securities and Exchange Commission on April 1 that it had been unable to file its 2009 annual report due to "delays in resolving certain disclosures." The bank filed the annual.
report with the SEC on Thursday.
The annual report discloses that the bank's independent registered public accountants expressed substantial doubt about the bank's ability to continue as a going concern in its audit report for fiscal 2009.
"If we cannot continue as a going concern, our shareholders will lose some or all of their investment in the company," the report noted.
On March 12, the NASDAQ stock market notified the bank it faced the possible delisting of its stock because it had closed below $1 per share for 30 consecutive days. On Friday, the stock closed at 49 cents a share, down a cent. As of Dec. 31, Tamalpais Bank had 72 full-time employees.
The annual report disclosed that Tamalpais Bank has been in default on $5.7 million worth of loans to Pacific Coast Bankers Bank since Sept. 3. The report stated that the bank has the option to foreclose on the collateral securing the loans, which includes the bank's stock. The annual report also disclosed that the bank is in "technical default" to the Federal Home Loan Bank of San Francisco, to which it owes $119 million.
The annual report stated that the bank's nonperforming assets totaled $46.9 million at the end of 2009, up from $17.1 million at the end of 2008.
According to the annual report, "Small business owners and investors have seen reduced revenues due to declining economic activity, and rising unemployment has caused some borrowers to become delinquent on loan payments. Additionally, the value of land, construction and commercial real estate loans have been severely impacted by the decline in occupancy rates, rental lease rates and property values."
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