LewRockwell.com reports that yet another bank in the Midwest has opted to delist from the stock exchange in order to cut costs. Like many companies that have delisted in the past, the bank blames Sarbanes-Oxley for the increase in costs associated with reporting to the Securities and Exchange Commission.
Auburn, Ind.-based Peoples Bancorp will delist from the NASDAQ using a 1-for-760 reverse split of common stock followed by a 760-for-1 forward split, according to InsideIndianaBusiness.com. Commenting on the decision, Peoples CEO Maurice F. Winkler III said:
We believe that the cost savings we will realize by going private will have a positive impact on the corporation's results of operation and will allow management to focus more of its attention on the corporation's business. The corporation's shares trade infrequently. Therefore, management and the directors believe that any negative impact on the liquidity of the shares as a result of deregistering and delisting will be minimal.
Northeast Indiana Bancorp delisted for similar reasons three years ago. Its officers have not regretted their decision, according to Greater Fort Wayne Business Weekly:
Randy Sizemore, chief financial officer for Northeast Indiana Bancorp, said its board has been pleased with the outcome of the decision to delist, considering the fact that the company's annual regulatory compliance costs of at least $150,000 would have doubled had it remained with the Nasdaq.