Citadel Holding Files to Sell Common Stock Rights

Citadel Holding Corp., the Glendale parent of Fidelity Federal Bank, said it has filed with the Securities and Exchange Commission to go ahead with its previously announced common stock rights offering aimed at raising $30 million.

The offering, which is intended to shore up Citadel’s capital, will enable stockholders of record to receive one right for each share of common stock they own. Citadel said each current shareholder will have the option to buy additional shares. In all, 2 million additional shares are being offered at a discounted price of about $15 a share.

The offering and the stockholder record dates have not yet been set.

On Friday, Citadel’s stock closed at $24 on the American Stock Exchange.

Citadel’s board approved the offering in June. In its second quarter ended June 30, the company posted a 37% decline in earnings from a year earlier, largely because it increased provisions for loan and real estate losses. In announcing the results, Citadel cautioned that it may not be able to meet future federal capital requirements.