Here’s the rundown on the fabulous moolah that the Ukrop boys will be pocketing as a result of selling First Market Bank to Union Bankshares. The payout to First Market Bank shareholders is to be made with Union Bankshares common stock (Nasdaq ticker: UBSH), which closed at $17.03 per share on Friday afternoon. So, the dollar value of the Ukrops’ payout, currently pegged at about $64 million, will fluctuate until they sell. Below is Saverichmond’s summary of the information from Union’s most recent SEC form 8k (the final page shows you First Market’s shareholders):
Keep an eye on UBSH filings to see when they cash out, which I bet will be as soon as they are allowed. Like me and a spoon and a $7 pint of Ukrop’s chicken salad (and not the low-fat, sissy kind, mind you), most of it will be gone in the blink of an eye. Chest….on….fire….must…..have…..Prilosec…..
The two firms combined have received $93 million in bailout funding from the U.S. Treasury’s Troubled Asset Relief Program (TARP) for struggling financial institutions. Given the recent deterioration in the financial position of both banks, Saverichmond believes this transaction would not have been possible at all, or could have only proceeded at a much reduced price, in the absence of the taxpayer subsidy. By now, both firms would probably have been asked by their regulator to raise new capital - with terms far more onerous, and which would have diluted ownership.
So, as you ponder the greatness that is Jim Ukrop, keep in mind that this transaction that enriches him so, done with your tax dollars, will result in 140 job losses.
Union Bankshares employs 670 people, including 93 at its mortgage operations. First Market employs 370 people.
From RichmondBizSense:
Union First Market Bankshares Corp., as the new entity will be named, will have 900 employees, according to company representatives who spoke at a news conference Monday morning.
Well done, Banksters.