Comments on: Bank stock woes http://blogs.bellinghamherald.com/business/whatcom-county-business/bank-stock-woes/ By Dave Gallagher Fri, 10 Feb 2012 17:39:22 +0000 http://wordpress.org/?v=2.7.1 hourly 1 By: Lucky7 http://blogs.bellinghamherald.com/business/whatcom-county-business/bank-stock-woes/comment-page-1/#comment-721 Lucky7 Wed, 04 Nov 2009 02:45:31 +0000 http://blogs.bellinghamherald.com/business/?p=244#comment-721 Although Horizon Bank has not publicly announced its 3rd Qtr results, the bank has filed its Sep 30 "Call Report" with the FDIC, and the results are not pretty. Horizon lost lost more than $34 million this past quarter and has seen its Tier 1 capital plummet from $45 mil as of Jun 30 to just over $10 mil as of Sep 30. Its Tier 1 ration has fallen from 3.2% to under 1% (0.8%). In order to meet the 10% Tier 1 capital ratio by the end of November - as required by the FDIC in its March 2009 cease & desist order - Horizon Bank will need to raise $125 million in new capital in 30 days. To appreciate how daunting this task is, the bank currently has just over 12 million shares outstanding. At $0.52, the bank's total market value is only $6.24 million. In other words, you can purchase the entire bank for just over $6 mil. How will Horizon raise the $125 million needed to meet the requirements of the FDIC order? FDIC Call Reports are available at no charge online at: https://cdr.ffiec.gov/public/ManageFacsimiles.aspx Although Horizon Bank has not publicly announced its 3rd Qtr results, the bank has filed its Sep 30 “Call Report” with the FDIC, and the results are not pretty.

Horizon lost lost more than $34 million this past quarter and has seen its Tier 1 capital plummet from $45 mil as of Jun 30 to just over $10 mil as of Sep 30. Its Tier 1 ration has fallen from 3.2% to under 1% (0.8%). In order to meet the 10% Tier 1 capital ratio by the end of November - as required by the FDIC in its March 2009 cease & desist order - Horizon Bank will need to raise $125 million in new capital in 30 days. To appreciate how daunting this task is, the bank currently has just over 12 million shares outstanding. At $0.52, the bank’s total market value is only $6.24 million. In other words, you can purchase the entire bank for just over $6 mil.

How will Horizon raise the $125 million needed to meet the requirements of the FDIC order?

FDIC Call Reports are available at no charge online at:
https://cdr.ffiec.gov/public/ManageFacsimiles.aspx

]]>