Troubled Tidelands Bancshares has entered into an agreement with regulators that requires it to seek prior approval before taking a number of actions, according to information filed with the US Securities and Exchange Commission.
Tidelands, the Mount Pleasant-based parent of Tidelands Bank, must get approval from the Federal Reserve Bank of Richmond before making any of the following moves:
- Declaring or paying any dividends;
- Directly or indirectly taking dividends or any other form of payment representing a reduction in capital from the bank;
- Directly or indirectly incurring, increasing or guaranteeing any debt; and
- Directly or indirectly purchasing or redeeming any shares of its stock.
Within 60 days of the agreement, Tidelands must submit a plan demonstrating its plans to maintain sufficient capital on a consolidated basis.
“Although the agreement does not contain specific target capital ratios or specific timelines, the plan must address the company’s and bank’s current and future capital requirements, the adequacy of the bank’s capital, the source and timing of additional funds to satisfy the company’s and the bank’s future capital requirements, and supervisory requests for additional capital at the bank or the supervisory action imposed on the bank,” according to the filing.
In addition, last week Tidelands was notified it had been delisted by NASDAQ. The company’s common stock closed below the required minimum bid price of $1 a share during the previous 30 consecutive business days, a violation of exchange rules.
Tidelands’ common stock will continue to trade on the NASDAQ Global Market under the symbol TDBK.
If at any time before then the bid price of the company’s common stock closes with a bid price of $1 or more for a minimum of 10 consecutive business days, NASDAQ will notify Tidelands that it has regained compliance. It has until mid-September 2011 to do so.
Tidelands stock is trading for around 60 cents a share.