Capital Corp. of the West of Merced, Calif., is looking for a new chief executive officer and has hired an investment bank to help it evaluate its strategic options.
The $1.9 billion-asset parent of County Bank also said late Wednesday that it has established an oversight committee of three outside directors, who have been given the authority to oversee all the company’s operations.
The announcements were made a day after Capital Corp. said it would delay filing its annual report while it gets a handle on mounting loan losses. Late Tuesday it said it expected to take a loan-loss provision of $26 million for the quarter and report a loss of $15 million.
After losing 65% of their value Wednesday, Capital Corp.’s shares rebounded Thursday, rising 72.3%, to close at $6.48.
The company said it has hired KBW Inc.’s Keefe, Bruyette & Woods Inc. as a financial adviser to help it increase its capital position and “develop strategic alternatives to enhance shareholder value.”
Capital Corp. also said that Thomas T. Hawker would retire as CEO as soon as a successor is found. Until then Mr. Hawker will report to the oversight committee.
