The largest shareholder of Foothill Independent Bancorp in Glendora, Calif., is urging the company to sell, according to a recent Securities and Exchange Commission filing.
Basswood Partners LP, a New York investment partnership run by Matthew and Bennett Lindenbaum, owns 9.22% of Foothill's common stock. In a Nov. 12 filing, the partnership said it is disappointed in the financial performance of $466 million-asset Foothill and that now is the time to consider selling.
"Basswood believes that shareholders cannot reasonably expect to achieve the same premium if the bank continues its current financial performance," the filing said. "A failure by the company's board of directors to consider a sale ... would be inconsistent with its fiduciary obligations."
Foothill officials could not be reached to comment.
Basswood took a similar stance last month in pushing for the sale of another Los Angeles-area community bank, Professional Bancorp of Santa Monica.
The investment partnership filed documents with the SEC calling Professional's strategy "flawed" and said it too should be looking for a buyer,
Professional, with $253 million of assets, caters to doctors and other health professionals.