Macon-based Atlantic Southern Bank, which has been under greater regulatory scrutiny for nearly a year, has another hurdle to cross.
Atlantic Southern was sent a notice this week from the Nasdaq Stock Market Inc. that the bank’s stock may be delisted from the global market if the value of its publicly held shares of stock does not increase.
The bank does not comply with Nasdaq’s market value rule because the market value of its shares during the past 30 consecutive trading days fell below the minimum $5 million required, according to a report filed by the bank to the U.S. Securities and Exchange Commission.
Atlantic Southern has 180 days, or until Jan. 31, to regain compliance, the report states. However, if the bank’s common stock is valued at $5 million or more for at least 10 consecutive business days before the deadline, the bank will be notified that it is in compliance with the market value rule.
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“Our stock (price) has been bouncing around,” said Ed Loomis, president and CEO of the bank. “It was $1.40 (a share) a few days ago, and $1.05 (Wednesday). ... Right after we got the notice, we did a calculation and (the market value) was $5.1 million or $5.2 million. But then within a couple of days, it had dropped down, which tends to happen a little more with a thinly traded stock.”
Thursday, the bank’s stock price opened at $1.22 a share and closed at $1.10, according to Nasdaq online. Its 52-week price range has been from 75 cents a share to $5.43 a share. The value of its stock after market close Thursday was $4.7 million.
The bank has been under a consent order by state and federal regulatory authorities since last fall, which means it has had to meet more regulatory requirements and deadlines. The order requires the bank to strengthen its oversight of management and operations of the bank, maintain specified capital and liquidity ratios and improve its lending and collection policies and procedures.
Atlantic Southern reported last month a net loss of $4 million for the second quarter compared to a net loss of $23.8 million for the same quarter of 2009.There is not much the bank can do to help improve its stock value, Loomis said.
“We could sell stock ... but we are not anticipating that right now,” he said. “It’s a very difficult market for that type of activity right now. It’s a difficult time for banks to raise capital. We do think that’s changing and that the market is getting better. We hope that trend will continue.”
To contact writer Linda S. Morris, call 744-4223