Wednesday, November 18, 2009

SacBee story today reporting Citizens Bank among the troubled

Some California banks struggle despite bailout
Locally ["among the eight that either halted or never made a dividend payment to the Treasury"], Nevada City-based Citizens Bancorp of Northern California received $10.4 million in TARP money in 2008.

Since then, it replaced its president in July, "deferred" its $140,000 dividend payment to the Treasury in August and restated its prior financial results in September.

Though Citizens had a $363,000 profit for the third quarter ended Sept. 30, its loss for the first nine months of 2009 is $1.7 million.

Chief executive Gary Gall said Citizens will defer another $140,000 dividend payment to the Treasury this quarter. "Right now it's wise for us to preserve our capital," he said.

Citizens thinks it has now set aside enough money for future loan losses, while working to resolve past-due loans and selling its foreclosed properties, Gall said.


Anonymous said...

Good eye, Anna. That's the first confirmation from Citizens that they won't pay the TARP dividend this quarter either.
-Jeff P.

Anonymous said...
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Anna Haynes said...

I've just started reading a book called Inside Job: The Looting of America's Savings and Loans, about the entirely predictable aftermath of Reagan's deregulating them. And what the S&Ls did - which was illegal even then, if I recall right - was figure out creative ways to make loans to their officers. But isn't this what Citizens is doing too? (if I read right, between the lines of this June 2009 Pelline post) And if so, when did it become legal, or how are the Citizens actions different from what's prohibited?

(and fyi to the curious, the "removed by an administrator" comment above was just a duplicate)