Key Developments For Harrington West Financial Group Inc
Harrington West Financial Group Inc (HWFG.O) (Consolidated Issue listed on NASDAQ Global Market)
Harrington West Financial Group Announces No Dividend
Harrington West Financial Group announced that no common or preferred stock dividends were paid during the quarter ended September 30, 2009.
Harrington West Financial Group Announces Sale Of Harrington Bank Operations In Kansas City To Arvest Bank
Harrington West Financial Group announced that it had entered into a definitive agreement to sell its Kansas City banking operations, which operate as Harrington Bank, to Arvest Bank, an Arkansas-chartered commercial bank that operates banking locations in Arkansas, Kansas, Missouri and Oklahoma. Under the agreement, Arvest will purchase certain assets at net book value, including two branch locations and approximately $94 million in loans, while assuming all $93 million of the deposits in the market and lease obligations for Harrington Bank's primary location at 6300 Nall in Mission, Kansas. Arvest will pay a fixed premium of $4.1 million for the Harrington Bank operations, unless the loans acquired or deposits assumed should fall below $75 million, which would result in an adjustment to the premium paid by Arvest. The transaction, which does not include the investment management and trust business of Harrington Wealth Management Company in the Kansas City market, is expected to close in the fourth quarter of 2009 after appropriate regulatory approvals are received. No investment banking fees were incurred by HWFG with respect to the Arvest transaction.
Harrington West Financial Group Announces Private Placement of Common Stock
Harrington West Financial Group announced that it had sold 250,000 shares of common shares at $2 per share for $500,000 in proceeds in a private placement to an individual investor. HWFG continues to pursue other strategic initiatives to increase its capital levels and improve its financial performance.
Harrington West Financial Group Suspends Quarterly Dividend
Harrington West Financial Group announced that the Board of Directors decided to continue the suspension of its quarterly common dividend to preserve capital in the current economic environment. The Board will re-evaluate this decision quarterly, based on income trends and the success of its initiatives to increase capital ratios.
Harrington West Financial Group Raises $11.4 Million In Common And Preferred Stock And Announces Strategic Alliance With Concordia Capital
Harrington West Financial Group announced that it raised $11.4 million in equity capital in a private placement. This equity capital will support the Company's expansion plans and is expected to maintain Los Padres Bank in a well capitalized position. The private placement consists of an offering of common stock at $6.25 per share and non-cumulative, perpetual preferred stock at $25 per share with an 8% annual dividend, convertible into four shares of common stock ($6.25 conversion price). Concordia Financial Services Fund, L.P. (Concordia) will contribute $10.0 million of this capital by purchasing common and preferred shares in two closings. Today, Concordia purchased 458,768 shares of common stock and 61,757 shares of the preferred stock for proceeds of $4.4 million. Within five days of Concordia receiving regulatory approval and the Company receiving shareholder approval, Concordia will purchase 581,232 shares of common stock and 78,243 shares of preferred stock on the same terms, or $5.6 million in proceeds. Harrington West and Concordia Capital Partners, LLC, the manager for Concordia, have entered into an advisory agreement, whereby Concordia will assist the Company in seeking acquisition opportunities in an effort to improve earnings and capital levels and in executing the Company's de-novo banking center plan in multi-markets.
