SAN RAFAEL -- Tamalpais Bancorp, the parent company for Tamalpais Bank, announced today it has been notified by the NASDAQ stock market that it no longer meets the minimum $1 per share bid price requirement for continued listing on the exchange.
Under listing rules, there is a 180-day grace period before the delisting takes place. The bank has until Sept. 8 to regain compliance with the minimum bid price rule.
The March 12, 2010 letter from NASDAQ said that if the bid price of the company’s securities closes at, or above, $1 per share for at least 10 consecutive business days before the grace period ends, NASDAQ will notify the company that the matter will be closed.
If the company does not regain compliance before Sept., it will receive written notification that its common stock is subject to delisting.
The company said it is evaluating its options following the notification.
Last month, The Federal Deposit Insurance Corp. issued Tamalpais Bank a directive requiring that within 30 days the bank either sell enough stock to be “adequately capitalized,” or accept an offer to be acquired by or combined with another institution.
The directive, signed by J. George Doerr, the deputy regional director of risk management for the division of supervision and consumer protection of the FDIC, stated that Tamalpais Bank is “a significantly undercapitalized depository institution as that term is defined” by the Federal Deposit Insurance Act and the FDIC Rules and Regulations and that the bank’s “condition continues to deteriorate.”
Tamalpais Bancorp is currently working out an agreement with the Federal Reserve Bank of San Francisco to help ensure compliance with a recent cease-and-desist order. Tamalpais Bank consented to the order in September with the Federal Deposit Insurance Corp. and the California Department of Financial Institutions.
The order required the bank to reduce its commercial real estate loan exposure and improve liquidity.
Tamalpais Bancorp’s wealth management unit is merging into San Francisco-based CSI Capital Management Inc. Under the terms of the agreement, Tamalpais Bancorp will share revenues from clients referred to CSI for a period of five years.