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Several community banks have decided to forgo an appeal of decisions by major stock exchanges to delist their shares, deciding the benefits of a listing aren't worth the cost of the fight.
November 28 -
Many bankers believe issues with classified loans are limiting them from making loans or pursuing acquisitions.
October 4
Unsuccessful in its bid to raise capital and recently ordered by regulators to bolster its loan-loss allowance, Fidelity Bank in Dearborn, Mich., is now critically undercapitalized and has told investors that is in danger of failing.
The $843 million-asset unit of Dearborn Bancorp Inc. has been undercapitalized since 2009 after suffering steep losses on real estate loans and its condition worsened following its most recent examination from the Federal Deposit Insurance Corp. and Michigan's Office of Financial and Insurance Regulation.
In a Securities and Exchange Commission filing Wednesday, the company said that while it disagrees with regulators' assessments of certain loans it has "no avenue for appear or reversal of these material adverse findings" and has therefore added to its loan-loss allowance to a comply with a March 14 order from the FDIC. It also warned investors in the SEC filing that if it does not raise substantial capital within 90 days then it is likely to be placed into receivership.
"Substantial doubt exists as to the company's ability to continue as a going concern," the SEC filing said. "We have determined that significant additional sources of capital will be required for the bank to continue operations through 2012 and beyond. We have previously engaged financial advisors to assist in our efforts to raise additional capital and explore strategic alternatives to address our current and expected capital deficiencies. To date, they have been unsuccessful."
Those comments elaborate on ones made in its 2011 first quarter report filed in May. At the time, the company said it needed to raise approximately $40 million to recapitalize its bank.
Dearborn's stock was
