Modification Letter to Prompt Corrective Action Directive between Office of Thrift Supervision and Greater Atlantic Bank

Summary

The Office of Thrift Supervision (OTS) sent this letter to the Board of Directors of Greater Atlantic Bank to modify deadlines in a previously issued Prompt Corrective Action Directive. The letter extends the time for the bank to enter into a binding merger or acquisition agreement to June 15, 2009, and the deadline for recapitalization and achieving required capital levels to July 31, 2009. The letter outlines the new compliance dates and provides contact information for further questions. The main parties are the OTS and Greater Atlantic Bank.

EX-10.3 4 grtat8kmay260910-3.txt EXHIBIT 10.3 [OFFICE OF THRIFT SUPERVISION LETTERHEAD] VIA FIRST CLASS MAIL AND FACSIMILE ###-###-#### May 22, 2009 OTS Docket No. 08491 Board of Directors c/o Carroll Amos, President and CEO Greater Atlantic Bank 10700 Parkridge Boulevard, Ste. P50 Reston, Virginia 20191 Re: Prompt Corrective Action Directive Modification Dear Board Members: The Board of Directors (Board) of Greater Atlantic Bank, Reston, Virginia, OTS No. 08491 (Greater Atlantic or Bank) entered into a Prompt Corrective Directive with the Office of Thrift Supervision (OTS) effective today, May 22, 2009, OTS Order No. SE-09-028 (Directive). Section 1.1 of the Directive requires Greater Atlantic to be recapitalized by merger, acquisition, or sale within ten (10) days. Section 1.1 further requires the Bank to enter into a binding merger or acquisition agreement within five (5) days. Section 1.2 of the Directive requires Greater Atlantic to achieve and maintain specified capital levels within ten (10) days. I am writing today to notify the Board that effective immediately, pursuant to Section 3.5.B of the Directive, the Directive is hereby modified to extend the Section 1.1 five (5) day time frame for obtaining a binding merger or acquisition agreement to Monday, June 15, 2009. The Directive is further modified to extend the ten (10) day recapitalization deadlines in Sections 1.1 and 1.2 to Friday, July 31, 2009. Board of Directors Greater Atlantic B, Reston, VA, OTS No. 08491 May 22, 2009 Page 2 If you have questions regarding this letter or these modifications, please contact Regional Counsel Karen Bruton at ###-###-####, Assistant Regional Director Robert A. Mitchell at ###-###-####, Review Examiner Wendell C. Walker at ###-###-####. Sincerely, /s/ Arthur W. Goodhand Arthur W. Goodhand Acting Regional Director cc: Mark S. Schmidt, Regional Director Federal Deposit Insurance Corporation 10 Tenth Street, NE, Suite 800 Atlanta, Georgia 30309-3906 George W. Murphy, Esq. Kilpatrick Stockton LLP Via Facsimile ###-###-#### Board of Directors Greater Atlantic B, Reston, VA, OTS No. 08491 May 22, 2009 Page 3 GREATER ATLANTIC BANK RESTON, VIRGINIA OTS NO. 08491 05.22.09 PCA DIRECTIVE MODIFICATION LETTER bcc: General File #08491 Permanent File #08491 A. Goodhand R. Mitchell W. Walker K. Bruton/Legal Department Institution File C. Gilliam-Myree/Copy to PCA Originals File OTS Washington - -------------- ecc: Lori Quigley, Managing Director Examinations and Supervision Operations Aaron Kahn, Senior Counsel Business Transactions W. Walker Enforcement Orders OTS Atlanta - ----------- C. Gilliam-Myree/SCANNED AND UPLOADED TO ECEF