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ASB Bancorp in Asheville, N.C., has received its second challenge in less than a month from an activist investor. The latest seeks a sale of the company.
August 4 -
ASB Bancorp in Asheville, N.C., is facing a potential proxy fight from New Jersey activist investor Lawrence Seidman.
July 28 -
While a number of community banks are preparing for lock horns with dissident shareholders, a bank in Indiana managed to work with an activist to avoid a nasty brouhaha.
March 25
ASB Bancorp in Asheville, N.C., has received its second demand in less than a month to put itself on the auction block.
The activist investor Lawrence Seidman on Aug. 21
"Much has been written about 'too big to fail,' but unfortunately ASBB falls into the category of 'too small to survive,' " Seidman wrote in the letter.
ASB, the holding company for Asheville Savings Bank, could not be reached for comment.
Seidman, who owned a 6% stake in ASB at March 31, criticized the company's performance, saying its returns on assets and returns are equity "are truly abysmal." ASB's return on assets was less than 0.5%, and its return on equity less than 4%, in the second quarter.
He also criticized ASB's worsening efficiency ratio, which was 88% at Dec. 31. ASB's second-quarter net income fell 8.8% to $941,000, or 22 cents per share, on lower net interest income after a provision for loan losses.
Seidman also alleged that during a February meeting with Suzanne DeFerie, ASB's chief executive, she attributed the company's results to the weak North Carolina economy. Seidman rejected the argument, saying most North Carolina banks have been able to deal handle poor economic conditions. "They are being more effectively managed," Seidman wrote.
Seidman also said that two potential buyers contacted him to express an interest in acquiring ASB. Additionally, Seidman said the CEO of another bank told him that he had emailed ASB to discuss a possible merger.
