Investor Weighs a Second Bid For Control of Maryland Thrift

A small western Maryland thrift is preparing for a second battle in as many years with a combative Florida investor.

Seymour Holtzman, the thrift's largest shareholder, last week fired the first shot in what could escalate into another fierce proxy fight over the future of First Financial Corporation of Western Maryand, Cumberland.

"If we do a proxy fight again it will get real ugly," said Charles Garcia, a spokesman for Mr. Holtzman's Thrift Value Fund, Boca Raton. "Because (First Financial) will go all out this time."

In a filing last week with the Securities and Exchange Commission, Mr. Holtzman revealed that he had purchased another 44,350 shares of First Financial stock, bringing his stake to 8.15% of all outstanding shares.

Mr. Holtzman also stated in the filing his dissatisfaction with the company's performance - namely the returns on equity and assets, which at the end of its third fiscal quarter on March 31 stood at 8.97% and 1.09%, respectively - and encouraged it to seek a buyer. He also said he is considering once again proposing a slate of candidates for the board.

"Our response to them is our yearend results," said Patrick J. Coyne, who became chief executive of the thrift about 18 months ago to clean it up. "We still have a lot of work to do to turn it around, but we're moving forward."

For the fiscal year ending June 30, First Financial reported net income of $3.6 million, compared with a net loss of $1.2 million for the year- earlier period - which was attributed to restructuring charges.

Mr. Holtzman and Mr. Coyne clashed just nine months ago at the company's annual shareholders meeting, when the brash investor defeated the company's proposed stock option plan and nearly secured enough votes to get his three candidates - including Mr. Garcia, his son-in-law - on the board. Mr. Coyne was one of the directors to be reelected.

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