PL Capital knows how to get banks to give in.
The Naperville, Ill., activist investor scored another victory this week when it put an end to a proxy challenge against Alliance Bancorp of Pennsylvania (ALLB) in Broomall. The companies announced on Wednesday that they had reached a standstill agreement that allows PL Capital to appoint Howard Henick to the $425 million-asset Alliance's board.
PL Capital, which owned about 9% of Alliance's common stock in November, agreed to support the board's recommendations, proposals and director nominations. The investor also pledged to refrain from taking legal action against Alliance or pushing the company to sell.
Henick, an equity portfolio manager at investment advisor ScurlyDog Capital, will join Alliance's board on March 19. Henick will secure a nomination to serve a three-year term at Alliance's annual shareholder meeting in April.
"We carefully considered the materials submitted by [PL Capital and Henick] and believe Henick is well qualified to serve as a director and it is in the best interests of the company and its shareholders to reach this agreement," Alliance President and Chief Executive Dennis Cirucci said in the release. "This agreement will permit us to focus on the company's financial performance and profitability."
PL Capital recently reached a similar agreement with BankFinancial (BFIN) in Burr Ridge, Ill. BankFinancial agreed in December to permit John Palmer, a PL Capital principal, to stand for election to its board.