First Bank of San Luis Obispo out of the woods?
November 19, 2009
First Bank of San Luis Obispo, a small local bank under the umbrella of Pacific Capital Bankcorp, has been having a rough time lately, with federal regulators demanding they come up with sufficient capital or face a possible takeover.
Investors responded by authorizing a reverse stock split, expected to increase the value by up to 10 fold. On Nov. 18, shares increased by 35 percent. [Pacific Coast Business Times]
The core of the bank’s financial woes is linked to a $362 million dollar loss that occurred in the third quarter.