Santa Lucia defers debt payments
Atascadero-based Santa Lucia Bancorp said Sept. 3 that, following consultation with Federal Reserve officials, it will defer payments on $5 million in debt for up to 20 quarters. The firm also recently announced that it expects to enter an agreement with or be placed under an enforcement order to boost capital by banking regulators.
The terms of the deferment allow Santa Lucia to postpone interest payments for the deferral period without penalty or default, the company said. Santa Lucia will continue to accrue interest owed and is prevented from paying cash dividends to its shareholders or repurchasing stock during the deferment period.
Santa Lucia Bancorp lost $8.9 million in the first half of 2010. In an Aug. 30 filing with the U.S. Securities and Exchange Commission, it said it expects to enter a formal agreement with or be placed under an enforcement order by banking regulators telling it to shore up capital or reduce certain troubled assets. “We already are developing strategies and taking actions to address such issues,” the banking firm stated.