$1.16 closing on NASDAQ

With a market cap at  $3.88 million on the close today, think about this recommendation by the board when you vote.

This proposal, commonly known as a Say-on-Pay proposal, gives you as a stockholder the opportunity to endorse or not endorse our executive pay program and policies through the following resolution:

“Resolved, that the stockholders approve the executive compensation of the Corporation, as described in the “Executive Compensation Discussion” and the tabular disclosure regarding named executive officer compensation (together with the accompanying narrative disclosure) in this Proxy Statement.”

Because your vote is advisory, it will not be binding upon the Board. However, the Compensation Committee will take into account the outcome of the vote when considering future executive compensation arrangements.

THE BOARD OF DIRECTORS UNANIMOUSLY RECOMMENDS A VOTE “FOR” APPROVAL OF THE EXECUTIVE COMPENSATION OF THE CORPORATION, AS DESCRIBED IN THE “EXECUTIVE COMPENSATION DISCUSSION”, AND THE TABULAR DISCLOSURE REGARDING NAMED EXECUTIVE OFFICER COMPENSATION (TOGETHER WITH THE ACCOMPANYING NARRATIVE DISCLOSURE) IN THIS PROXY STATEMENT.

6 comments on “$1.16 closing on NASDAQ

  1. The only thing I will vote for is the shareholder proposal and the auditors. At least the auditors have the fore site to state, ” These facts raise substantial doubt about the Company’s ability to continue as a going concern”.

    The reason I will vote against all the directors and the “Say on pay” is because that is the only way I have to express my total lack of confidence with this board. Keep in mind that these are the same people that put us into this mess.

  2. PNBC stock is presently trading and has value, though rather miniscule. If the bank fails, it seems likely that the stock may sooner or later become worthless. If that happens, writing off your loss on your income taxes could be tricky and may require filing amended tax returns for prior years. For example, Google “worthless stock” or see this link: http://www.usatoday.com/money/perfi/taxes/2008-03-11-aicpa-q12-worthless-stock_N.htm

    I hope it doesn’t come to that, of course.

  3. I’m guessing around 4:50pm CDT tomorrow a few black SUVs will be getting off I-80 and pulling into the parking lot behind 606 S. Main Street. The OCC gave them until Monday to come up with a plan. Monday came and went, and there was no announcement from the bank.

  4. I tend to think Citizens could wrangle an extension of time from the OCC if necessary. The bank’s “plan” may be something like: we’ve hired Joe Blow & Associates to submit their evaluation and action steps for this and that alternatives. And, we’re talking to investment banker XYZ. We’re very optimistic, etc., etc.

    Plus, it’s the FDIC who seizes a bank, not the OCC. And if and when they do, it is a rather complicated operation – more than a few SUVs pulling into the Princeton parking lot Friday afternoon. The FDIC needs to swarm into each branch office simultaneously and hopefully have a pre-arranged take-over bank ready to step in and be ready to open the former Citizens’ locations Monday morning for business, including honoring checks and arranging continuity of accounts. Maybe not quite as complicated as the raid on bin Laden – no helicopters, etc. And, of course, the FDIC has done this many times before.

    If the FDIC doesn’t come up with a take-over bank, then the process is somewhat simpler, at least for the feds. The FDIC shuts down the bank and all its branches, and they are permanently closed for business. The FDIC sorts through the books, and then issues checks to owners of insured accounts. (Other, uninsured depositors are out of luck.) Access to safe-deposit boxes will be arranged. If you have a CD that hasn’t matured yet, do you get an early-redemption haircut? I don’t know, for sure, but probably not – I’m just guessing. Loan payments will be made to the FDIC or its designee. The FDIC becomes the owner of all the bank’s assets – office buildings, foreclosed collateral, loans, etc.

    From my reading, probably 10% or fewer failed banks are simply closed down by the FDIC, without a pre-arranged take-over bank coming in.

  5. Closures- the FDIC typically has on-going negotiations with other banks willing to take-over the failing bank, and by the time they step-in the deal is typically done overnight, so that the bank opens the next morning without any closure, and is under new management. All financial notes, such as CDs, are honored as they exist. The only problem may be in finding another bank to take-over PNBC, because it takes-on the bad loans, etc.

Comments are closed.