In the letter, HoldCo disclosed that in April 2016 it purchased $8 million in face value of FNBC's publicly registered 5.75% subordinated debt (which it still holds) but that it has recently acquired a short position in FNBC's common stock, resulting in an overall directionally short position. HoldCo acquired the short position based on concerns raised in the letter including the company's large deferred tax asset and its substantial phase-out of Common Equity Tier 1 Capital by 2018. This development could result in the need for a significant capital raise.
In its letter, HoldCo asked Mr. Ryan to answer a series of important questions that it has been grappling with for some time. HoldCo sent Mr. Ryan the letter and is filing it publicly in the hope that Mr. Ryan will share his thoughts on the public record for the benefit of all who are long or short instruments issued by FNBC. HoldCo attempted, with admitted imprecision, to answer these questions itself. However, HoldCo recognizes that Mr. Ryan knows more about FNBC than it does and therefore believes that a response from Mr. Ryan will be of immense value to all stakeholders. If HoldCo's concerns are unfounded, it will be content to admit such, cover its short position, and resume clipping coupons on the subordinated debt that it holds.
HoldCo invites you to read the letter that it sent to Mr. Ryan, which can be found at: http://holdcoam.com/wp-content/uploads/Letter_to_FNBC.pdf
HoldCo is currently planning on releasing a comprehensive analysis of FNBC and the issues facing FNBC after it has had an opportunity to read and digest the upcoming release of FNBC's Annual Report on Form 10-K, which is expected to be filed this coming Monday based on the compliance plan that FNBC filed with Nasdaq.
About HoldCo Asset Management
HoldCo Asset Management is an investment adviser located in New York City. HoldCo was founded by Vik Ghei and Misha Zaitzeff. HoldCo and its affiliates currently have approximately $400 million under management.
As of the publication date of this report, HoldCo Asset Management, LP and its affiliates (collectively "HoldCo"), have a long position in the subordinated debt and a short position in the stock of the company referenced herein. Taken as a whole, HoldCo holds a directionally short position in FNBC that will profit if the price of FNBC's common stock declines. HoldCo may change its views about its investment positions in FNBC at any time, for any reason or no reason, and at any time may change the form or substance of any of its FNBC investment positions. If it does so, it will not be under obligation to inform anyone.
All content in this report represent the opinions of HoldCo. HoldCo has obtained all information herein from publicly available sources they believe to be accurate and reliable. However, such information is presented "as is," without warranty of any kind whether express or implied. HoldCo stresses that the letter linked to in this press release is a highly imperfect, and very rough, attempt to piece together limited public information to formulate answers to some of the most pressing questions that it has about FNBC. HoldCo is working with SEC filings that are outdated and currently being restated and a recent call report that lacks explanatory footnotes.
This document is for informational purposes only and is not intended as an official confirmation of any transaction. All data and other information are not warranted as to completeness or accuracy and reflect HoldCo's views as of this date, all of which are accordingly subject to change without notice.
This document does not in any way constitute an offer or solicitation of an offer to buy or sell any investment, security, or commodity discussed herein, or any security in any jurisdiction in which such an offer would be unlawful under the securities laws of such jurisdiction.
The information contained in this document may include, or incorporate by reference, forward-looking statements, which would include any statements that are not statements of historical fact. These forward-looking statements may turn out to be wrong and can be affected by inaccurate assumptions or by known or unknown risks, uncertainties and other factors, most of which are beyond the HoldCo's control.
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/holdco-asset-management-sends-public-letter-to-fnbc-regarding-concerns-and-requesting-response-300312869.html
SOURCE HoldCo Asset Management