Waccamaw Bankshares Inc. in Whiteville, N.C., has until late September to file certain financial statements with the Securities and Exchange or else its thinly traded stock could be removed from the Nasdaq exchange.
Waccamaw, with $588 million of assets, has been awaiting the results of an audit of its financials before it can file its 2010 annual report and its quarterly report from this year's first quarter. The delay is in violation of Nasdaq's listing requirements, but Waccamaw said in a news release Monday that the exchange's hearings panel has agreed allow its shares to remain listed on Nasdaq on the condition that the annual and quarterly reports are submitted by Sept. 27.
"Nasdaq has been extremely patient and understanding of our situation," said Waccamaw President Geoff Hopkins in a statement. "We are doing everything possible to move along the process of filing our financial statements."
Waccamaw attributed the delay to the "complexity" surrounding three transactions it completed last year in its effort to improve earning assets and reduce problem loans.
Still, if recent filings with the Federal Deposit Insurance Corp. are any indication, Waccamaw is likely to report losses for last year and this year's first quarter. According to the FDIC, Waccamaw lost $9 million in 2010 and $8 million through the first half of 2011. At June 30, more 13% of its loans were at least 90 days past due, according to FDIC data.
Waccamaw's shares were trading 43 cents Tuesday, 80% below their 52-week high.