Savannah Bancorp Inc - Current report filing (8-K)
October 02 2008 - 4:03PM
Edgar (US Regulatory)
UNITED STATES SECURITIES AND EXCHANGE
COMMISSION
WASHINGTON, DC
20549
FORM 8-K
CURRENT
REPORT
PURSUANT
TO SECTION 13 OR 15(d) OF THE
SECURITIES
EXCHANGE ACT OF 1934
Date of
Report (Date of earliest event reported):
September 30,
2008
THE SAVANNAH BANCORP,
INC.
(Exact
name of registrant as specified in its charter)
Georgia
|
0-18560
|
58-1861820
|
State
of Incorporation
|
SEC
File No.
|
Tax
I.D. No.
|
25 Bull Street, Savannah, GA
31401
(Address
of principal executive offices) (Zip Code)
912-629-6486
(Registrant's
telephone number, including area code)
Not
Applicable
(Former
Name or Former Address, If Changed Since Last Report)
Check the
appropriate box below if the Form 8-K filing is intended to
simultaneously
satisfy the filing obligation of the registrant under any
of the
following provisions (see General Instruction A.2. below):
|_|
Written communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)
|_|
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
|_|
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act
(17 CFR
240.14d-2(b))
|_|
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act
(17 CFR
240.13e-4(c))
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Item 8.01 - Other
Events
The
Savannah Bancorp, Inc. (the “Company”) has formed a new subsidiary, SAVB
Holdings, LLC, to house previously identified problem loans (including
performing and nonperforming loans) and foreclosed real estate (“OREO”)
primarily from its Harbourside Community Bank subsidiary. On
September 30, 2008, the Company funded this subsidiary with an initial $12.5
million loan from a related private party and purchased loans and OREO at their
current value. Additional funding, if needed, will be provided from
internal sources to permit SAVB Holdings, LLC to purchase an additional $7.5
million of such loans and OREO. The purchase price of all such loans
and OREO is based on their current value.
“The
formation of this subsidiary will allow the Company to manage and liquidate
problem assets more effectively. This will also allow Company
management to focus on problem assets from Harbourside as well as any other
asset issues that may materialize from other subsidiaries should we have a
prolonged downturn in the economy and the real estate market”, said John C.
Helmken, President and Chief Executive Officer of The Savannah
Bancorp.
Helmken
added, “Managing these assets from our Savannah headquarters, with an
experienced senior staff, will provide the best outcome for our Company given
today’s environment. The Company continues to be profitable and
well-capitalized, and even at $20 million this represents a small percentage of
our $964 million in total assets at quarter end, June 30, 2008. We
remain focused on this problem and committed to bringing it to a resolution as
quickly as possible.”
The
Savannah Bancorp, Inc. ("SAVB"), a bank holding company for The Savannah Bank,
N.A., Bryan Bank & Trust (Richmond Hill, Georgia), Harbourside Community
Bank (Hilton Head Island, SC) ("Harbourside") and Minis & Co., Inc., is
headquartered in Savannah, Georgia and began operations in 1990. Its primary
businesses include loan, deposit, trust, asset management, and mortgage
origination services provided to customers.
Forward-Looking
Statements
This filing
contains statements that constitute "forward-looking statements" within the
meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934 as
amended by the Private Securities Litigation Reform Act of 1995. These
forward-looking statements include, among others, statements identified by words
or phrases such as "potential," "opportunity," "believe," "expect,"
"anticipate," "current," "intention," "estimate," "assume," "outlook,"
"continue," "seek," "plans," "achieve," and similar expressions, or future or
conditional verbs such as "will," "would," "should," "could," "may" or similar
expressions. These statements are based on the current beliefs and expectations
of our management and are subject to significant risks and uncertainties. There
can be no assurance that these transactions will occur or that the expected
benefits associated therewith will be achieved. A number of important factors
could cause actual results to differ materially from those contemplated by our
forward-looking statements in this press release. Many of these factors are
beyond our ability to control or predict. These factors include, but are not
limited to, those found in our filings with the Securities and Exchange
Commission, including our Annual Report on Form 10-K, Quarterly Reports on Form
10-Q and Current Reports on Form 8-K. We believe these forward-looking
statements are reasonable; however, undue reliance should not be placed on any
forward-looking statements, which are based on current expectations. We do not
assume any obligation to update any forward-looking statements as a result of
new information, future developments or otherwise.
SIGNATURES
Pursuant
to the requirements of the Securities Exchange Act of 1934, the registrant has
duly caused this report to be signed on its behalf by the undersigned hereunto
duly authorized.
The
Savannah Bancorp, Inc. (Registrant)
By: /s/ Michael W.
Harden, Jr.
Date: October 2,
2008
Michael
W. Harden, Jr.
Acting
Chief Financial Officer
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