Heritage Oaks Bancorp Paso Rubles, CA

This is Larry Ward, the CEO, he took $21MM in you bail money, which he hasn’t paid back

Larry hasn’t even paid interest on your money since 2/10

His bank is on the problem bank list

Larry got paid $518k to lose $30MM, not a bad gig

Heritage Oaks Bancorp Paso Rubles, CA was founded in 1983.  The comapny took $21MM in tax payer funded bailout money, which has decided that is doesn’t want to repay.  As a matter of fact, they haven’t even made interest payments since 2/10.  Not a bad deal, the bank doesn’t have to pay interest on money they stole from the tax payer.  What if we didn’t pay interest on money owed to them?  Maybe that is why they are on the problem bank list.  They entered into a consent agreement with the FDIC, for basic incompetence and making bad commercial real estate loans, shocking!

The company has $982MM in assets with $121MM in stated equity.

The actual equity position is $100MM, as the $21MM in preferred stock is actually tax payer funded debt, which they have decided not to pay back.  Then again, they don’t even pay interest.

The problem loan portfolio consists of $2MM in loans 30-90 days past due, $36MM on non accrual.

The non accruals alone, could easily wipe out the equity base.

This bank is technically insolvent.

The net income was ($21MM) in FY10 and ($8MM) in FY09.

So how are they going to pay back the tax payer? They can’t.

Rest assured the executive pay was not effected.

Lawrence Ward  made  $518K

Ronald Oliveira   made  $489K

Joanne Funnari   made   $234K

That is good money for bankrupting this company.

It’s a good thing they can pay themselves but not the tax payer.

Couldn’t they use some of this money to make interest payments.

Why hasn’t the FDIC closed this place down, probably because they are bankrupt also.

Check out the investor relations page.  They have a chart with the efficiency ratio skyrocketing and core EPS getting wiped out.  Guys you probably don’t want the public to see this

Tags: default, deliquency, executives paid despite non payment of bailout fund, FDIC, insolvent, Non repayment of Gov. bailout funds, problem bank list, real estate