Harrington Westa?s Subsidiary, Los Padres Bank, Stipulates to Entry of a Prompt Corrective Action Directive by the OTS
SOLVANG, Calif.--([ BUSINESS WIRE ])--Harrington West Financial Group, Inc. (OTCBB: HWFG) announced today that its subsidiary, Los Padres Bank FSB (Bank), had stipulated to the entry of a Prompt Corrective Action Directive (aPCA Directivea) applicable to the Bank by the Office of Thrift Supervision (aOTSa). The PCA Directive outlines guidelines for reporting to the OTS on the status of the Bank's capital raising efforts and sets forth certain required recapitalization mandates and additional business and operational restrictions. The PCA Directive became effective on July 26, 2010.
Under the PCA Directive, among other things, the Bank is required to be adequately recapitalized by July 31, 2010 or enter into a merger or acquisition agreement with another institution, unless extended in writing by the OTS. The Company and the Bank cannot provide any assurance that the deadlines and other terms of the PCA Directive can be satisfied. The Banka™s consent to the PCA Directive follows the OTSa™ denial of the Banka™s capital restoration plan. HWFG and the Bank continue to vigorously pursue avenues to meet the PCA Directive and all other regulatory requirements.
This Release includes "forward-looking statements" within the meaning of Section 27A of the Securities Act. All of the statements contained in the Release, other than statements of historical fact, should be considered forward-looking statements, including, but not limited to, those concerning (i) the Companya™s ability to fulfill the terms of the Prompt Corrective Action Direction and/or to comply with the Cease and Desist Orders issued to it and its banking subsidiary by the Office of Thrift Supervision, (ii) the Company's strategies, objectives and plans for expansion of its operations, products and services, and growth of its portfolio of loans, investments and deposits, (iii) the Company's beliefs and expectations regarding actions that may be taken by regulatory authorities having oversight of the operation, (iv) the Company's beliefs as to the adequacy of its existing and anticipated allowances for loan and real estate losses, (v) the Company's beliefs and expectations concerning future operating results, and (vi) the Companya™s beliefs and expectations regarding the future performance of the real estate or mortgage markets and its securities portfolio. Although the Company believes the expectations reflected in those forward-looking statements are reasonable, it can give no assurance that those expectations will prove to have been correct.Investors are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof and are not intended to give any assurance as to future results. The Company undertakes no obligation to publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.