Apparently, shareholders of Congaree Bancshares didn’t take the news of founder and CEO Hank Ray’s departure as a good sign.
On Thursday, just a little more than a full day after Ray’s resignation from the Cayce, SC, bank company became public, Congaree’s stock fell 80 percent, to $1 a share. In fairness to the company, only 200 shares of stock were listed as being traded on Wednesday.
That’s a precipitous decline from the $10 per share investors paid to buy into the company during its inital offering, in 2006.
Congaree State Bank, like most financial institutions, has had a rough go of it in recent months. For the quarter ended Sept. 30, the most recent available, it lost $430,533, compared with $482,990 for the same period in 2007, according to Securities & Exchange Commission filings.
However, it’s not unusual for new banks to post losses during their first couple years of operation.
Earlier this year, the bank received $3.3 million in federal bailout money.
Ray’s last day with the bank was Jan. 21, but the departure wasn’t announced until Tuesday. No reason was given for the change. Ray was replaced on an interim basis by Charlie Lovering.