The chief executive and three directors of Atlantic Coast Financial (ACFC) are leaving the company after shareholders rejected a proposed sale to Bond Street Holdings earlier this month.
G. Thomas Frankland will resign as president, CEO and chairman of the Jacksonville, Fla., company on July 1, Atlantic Coast disclosed in a filing with the Securities and Exchange Commission on Thursday. Chief Financial Officer Thomas Wagers will become interim president and CEO when Frankland leaves.
On June 11, 55% of Atlantic Coast shares were voted against selling the company to Bond Street. A group of dissident shareholders, led by Jay Sidhu, the chairman of Customers Bancorp (CUBI) in Pennsylvania, and Bhanu Choudhri, had argued that the $5-per-share sale price was too low and urged the company to recapitalize itself instead of seeking a sale.
In addition to pushing Frankland out, Sidhu and Choudhri may have won an overhaul of Atlantic Coast's board.
Three directors Charles Martin, Forrest Sweat and Thomas Beeckler will not stand for re-election at Atlantic Coast's annual meeting on Aug. 16, the company said in the filing. The candidates nominated to fill the three seats for three-year terms are: John Dolan, former CEO of First Commonwealth Financial Corp. in Pennsylvania; Kevin Champagne, former CEO of Seacoast Financial Services Corp. in Massachusetts; and Dave Bhasin, the CEO of a restaurant-franchising company in Pennsylvania. Sidhu and Choudhri had proposed the three board candidates in February.
Sidhu predicted the shakeup earlier this month, telling American Banker that "in a few weeks we will have will have a reconstituted board and new CEO." He also said that the $749 million-asset bank would soon begin a capital raise.