Guaranty Bank, with more than 150 locations throughout Texas and California and an executive team in Dallas, could become the latest casualty of the recession.
The noted in a recent SEC filing that its core capital ratio stood at a negative 5.78 percent as of March 31, 2009, and it called itself “critically under-capitalized.”
The company had faced significant write-downs that prohibit it from applying for open bank assistance. Primary stockholders have not affirmed their willingness to commit to a capital infusion.
“As a result, the Company no longer believes that it will be possible for the Company or the Bank to raise sufficient capital to comply with the Orders to Cease and Desist described in the Company’s Current Report on Form 8-K filed on April 8, 2009. In light of these developments, the Company believes that it is probable that it will not be able to continue as a going concern,” the bank said.
The bank has agreed to be taken over by federal banking regulators, but that has not happened yet.
Holly LaFon has written and worked for various local publications including D Magazine and Examiner.
