United Western Bancorp, Inc. (NASDAQ: UWBK) (the "Company”), a
Denver-based holding company whose principal subsidiary was formerly
United Western Bank® (the "Bank”), today announced that on
January 21, 2011 the Federal Deposit Insurance Corporation ("FDIC”) was
appointed as receiver for the Bank by the Office of Thrift Supervision
under the Federal Deposit Insurance Act. The FDIC immediately sold the
Bank to First-Citizens Bank & Trust Company of Raleigh, North Carolina,
who will operate the Bank under a new name commencing on January 24,
2011.
This action was taken despite the Company’s extensive efforts to
recapitalize itself and the Bank. At the date of the seizure by the
FDIC, the Company had written commitments for the investment of $149
million and had received strong indications of interest in excess of $70
million. Guy A. Gibson, the Company’s Chairman of the Board, expressed
his surprise and disappointment with the OTS and FDIC action, saying,
"We were making steady progress with regard to completing our capital
formation efforts and were within sight of the completion of our $200
million raise. This precipitous action by the OTS and the FDIC will
ultimately cause an unnecessary loss to the Deposit Insurance Fund,
since our private market solution was near at hand. Our solution would
have avoided any loss to the Deposit Insurance Fund and spared the
industry millions of dollars of additional assessments now required to
cover this cost to the Deposit Insurance Fund.”
The Bank was the Company's principal subsidiary. Following the seizure
of the Bank by the FDIC, the Company is exploring its options and will
consider all alternatives to protect and maximize the value of its
remaining assets. The Company and certain of its subsidiaries and
affiliates may be required to seek protection under the federal
Bankruptcy Code in order to seek a reorganization or pursue an orderly
liquidation of those assets.
Mr. Gibson went on to note that the Company would work with the NASDAQ
Global Market to determine whether it would be possible to maintain the
Company’s stock listing on that market, but the Company views this as
unlikely and trading may be suspended as a result of the FDIC
appointment. The Company was previously advised on August 5, 2010 by the
NASDAQ Global Market that its common stock would be delisted from that
market if its common stock price did not recover to above $1.00. It is
likely that the NASDAQ Global Market will suspend trading in the
Company’s common stock if the Company enters bankruptcy.
Customers who have questions about today's transaction can call the FDIC
toll-free at 1-800-405-8028. The phone number will be operational this
evening until 9:00 p.m., Mountain Standard Time (MST); on Saturday from
9:00 a.m. to 6:00 p.m., MST; on Sunday from noon to 6:00 p.m., MST; and
thereafter from 8:00 a.m. to 8:00 p.m., MST. Interested parties also can
visit the FDIC's Web site at http://www.fdic.gov/bank/individual/failed/unitedwestern.html.
Forward-Looking Statements
Certain statements contained in this press release may be deemed to be
forward-looking under federal securities laws, and the Company intends
that such forward-looking statements be subject to the safe harbor
created thereby. Such forward-looking statements include, but are not
limited to, statements regarding the Company’s efforts to protect its
remaining assets, filing for bankruptcy, and the delisting of the
Company’s common stock on the NASDAQ Global Market. The Company cautions
that these statements are qualified by important factors that could
cause actual results to differ materially from those reflected by the
forward-looking statements contained herein. Such factors include
(a) the Company’s ability to resolve the methodology difference in the
determination of OTTI with the OTS and FDIC and (b) other risks detailed
in the Company’s Annual Report on Form 10-K for the fiscal year ended
December 31, 2009, Quarterly Report on Form 10-Q for the fiscal quarter
ended June 30, 2010, and subsequent filings with the Securities and
Exchange Commission. The Company has not filed its Quarterly Report on
Form 10-Q for the fiscal quarter ended September 30, 2010 and has no
present plans to correct that omission.
