Business Context and Reporting Period
This Form 8-K was filed by B of I Holding, Inc. (parent of Bank of Internet USA) on March 24, 2009. The filing addresses a strategic decision by the Board of Directors regarding government capital assistance programs.
Key Financial Metrics
The filing text does not provide specific numerical values for revenue, profit, cash flow, margins, debt, or liquidity. However, management explicitly characterizes the Bank as holding a "well-capitalized position."
Material Changes
The primary material event is the unanimous Board vote to withdraw the company's application for the U.S. Treasury Department's Troubled Asset Relief Program (TARP) Capital Purchase Program (CPP). The company had previously submitted an application in November 2008 and received a recommendation for approval from the Office of Thrift Supervision.
Management Commentary and Risks
Management cited three primary factors for the decision to withdraw:
- Ever-changing conditions imposed by the U.S. government on other CPP recipients.
- Growing negative publicity associated with participating banks.
- The Bank's existing well-capitalized status.
Investor Verification Checklist
- Verify the Bank's current capital adequacy ratios in the most recent 10-Q or 10-K to confirm the "well-capitalized" claim.
- Review the specific regulatory conditions attached to TARP CPP participation that influenced the withdrawal decision.
- Assess the impact of the withdrawal on the company's liquidity strategy given the 2009 economic environment.