Discontinuance of the common dividend that was approved as recently as October 30, 2008 has me scratching my head given that the TARP was approved around October 3, 2008. In my opinion, the bank made a mistake when it reinstituted the dividend and its action has me wondering what the heck is going on. If reinstitution of the dividend was supposed to build credibility with shareholders, that same credibility has been lost. When the dividend was announced, we were told the following:
Allan R. Dennison, President and CEO commented, "As a result of our improved profitability, stable asset quality, and strong capital position, we are pleased to declare this common stock cash dividend."

Since the above was said in late October and the bank is now taking TARP money, are we now to assume that the quoted words are less true today than they were when released? Today it always pays to expect the worst and hope for the best because face it, does anybody in a position of responsibility really know what they are doing?

I will be interested to see if any of the local competition take TARP money if it is such a great deal. And while I'm at it, I believe our CEO should take a much larger stake in ASRV considering the pain that the shareholders have felt over the years. I'm sure some of the directors feel this way, even though they may not want to admit it.

Happy Holidays to all!