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Cowlitz Bank Update

Posted on 30th June 2010 at 07:57

It didn’t take long for the Nasdaq Hearings Panel to make a ruling regarding Cowlitz Bank’s appeal of a delisting notice that had been filed back in May, announcing this morning that the request for a exception to the listing standards has been denied. Today is the last day of trading in Cowlitz Bank stock on the Nasdaq exchange, and the company is taking a beating. Cowlitz Bank opened the day at $4.07, and within the hour of trading, the stock was down more than $2. It has since rebounded a bit. Last Friday, Cowlitz Bank appealed the delisting notice, presenting an updated plan to get back into compliance. It took just three days to reject that updated plan. Cowlitz Bank also faces a pending action from the FDIC, which says that Cowlitz Bank is “critically undercapitalized,” and has set a July 15 deadline to raise $15 million, or to sell to another financial institution. In recent days, a Bellevue-based private equity company that had attempted a takeover in 2007 started liquidating its holdings; Crescent Capital VI sold about $900,000 of Cowlitz Bank stock in the past two weeks. Cowlitz Bank officials say that the stock sale was a good thing, and might help to attract investors, but it’s unclear at this time how the delisting decision will affect those efforts to attract capital investors.