Waccamaw Bankshares 8-K 2011
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) November 29, 2011
Waccamaw Bankshares, Inc.
(Exact name of registrant as specified in its charter)
Registrants telephone number, including area code (910) 641-0044
(Former name or former address, if changed since last report.)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
On November 29, 2011, the board of directors of Waccamaw Bank (the Bank), a wholly owned subsidiary of Waccamaw Bankshares, Inc. (the Company), authorized the execution of a Prompt Corrective Action Directive (the Directive) issued by the Board of Governors of the Federal Reserve System (the Board of Governors). The Directive will become effective when executed by the secretary of the Board of Governors.
The Directive informs the Bank that the Board of Governors has determined that, as of October 30, 2011, the Bank falls within the critically undercapitalized capital category for purposes of the prompt corrective action provisions of section 38 of the Federal Deposit Insurance Act (the FDIA). As summarized below, the Directive requires the Bank, in conjunction with the Company, to undertake a number of actions and comply with certain restrictions.
No later than January 6, 2012, the Bank and the Company must:
The Bank must also comply with all prompt corrective action provisions mandated by section 38 of the FDIA, including restrictions relating to compensation or bonuses paid to senior executive officers; capital distributions, including the payment of dividends; asset growth; acquisitions; branching; and new lines of business.
While the Directive is in effect, the Bank is restricted from the following activities:
Within thirty days of the Directive, the Bank is required to submit an acceptable plan and timetable to the Reserve Bank for conforming the rates of interest paid on all existing non-time deposit accounts to the prevailing effective rates on deposits of comparable amounts in the Banks market area. The Bank is also required to submit monthly progress reports to the Reserve Bank detailing the steps taken to comply with the Directive.
The Directive will remain effective until stayed, modified, terminated, or suspended by the Board of Governors. The Directive does not supersede the written agreement between the Company, the Bank, the Reserve Bank, and the North Carolina Commissioner of Banks dated June 14, 2010. The written agreement is more fully described in the Companys Current Report on Form 8-K, filed with the Securities and Exchange Commission on June 18, 2010.
The foregoing description of the Directive is a summary and does not purport to be a complete description of all of the terms of the Directive.
This current report on Form 8-K (including information included or incorporated by reference herein) may contain, among other things, certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including, without limitation, (i) statements regarding certain of the registrants goals and expectations with respect to earnings, income per share, revenue, expenses and the growth rate in such items, as well as other measures of economic performance, including statements relating to estimates of credit quality trends, and (ii) statements preceded by, followed by or that include the words may, could, should, would, believe, anticipate, estimate, expect, intend, plan, projects, outlook, or similar expressions. These statements are based upon the current belief and expectations of the registrants management and are subject to significant risks and uncertainties that are subject to change based on various factors (many of which are beyond the registrants control).
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.