ALBANY, Ga. - (02/21/06) The cost of going public in aninitial public offering cut deeply into earnings at former creditunion HeritageBank, halving fourth quarter earnings to just$561,000, or five cents a share, the savings bank reported Friday.For the fiscal year, the bank, known as AGE FCU until five yearsago, reported a 17% decline in earnings, to $2.9 million, or 31cents a share. The decline in earnings were due to a 20% dilutionof the companys stock because of last years IPO andof the implementation of an Employee Stock Ownership Plan. Higherexpenses to pay legal and accounting costs required of a publiccompany helped push up costs, the company said. The companycompleted its IPO in June and raised $32 million in capital. Theshares were introduced at $10 each and were trading on the Nasdaqat $11.45 on Friday. In the first year of going public theex-credit union reported assets and loans increased by 6%, anddeposits fell by 4%. Some of that run-off in deposits was relatedto outside investors who had deposited shares in the mutual savingsbank to get in on the IPO, the bank said.
-
The Wyoming-based digital asset bank filed paperwork to challenge last month's district court ruling, which affirmed the Federal Reserve's view about its discretion over master account applications.
1h ago -
The former head of the Consumer Financial Protection Bureau resigned Friday after the troubled rollout of the Free Application for Federal Student Aid led some House Republicans to call for his resignation.
2h ago -
The San Antonio-based bank said that loan growth, fueled in part by its expansion in key Texas markets, may compensate for pressure on deposits. It slashed the number of rate cuts it expects this year from five to two.
3h ago -
Mississippi's Renasant names its next CEO; environmental fintech Aspiration Partners spins out its consumer brand; the OCC adds five weeks to comment period for Capital One-Discover merger; and more in the weekly banking news roundup.
3h ago -
The Wisconsin banking company forecasted loan growth of 4% to 6% for the full year, driven by an expansion into new commercial and consumer credit lines as well as enduring economic strength in the Midwest.
5h ago -
In the inaugural iteration of American Banker's news quiz, test your knowledge on top articles covering the legal battles of the Consumer Financial Protection Bureau, new technology testing at JPMorgan Chase, earnings season and more.
5h ago