Riverview Bancorp in Vancouver, Wash., is facing pressure from a large investor to sell itself.
Ancora Advisors in Cleveland disclosed in a regulatory filing Friday that it sent a letter earlier this month to Patrick Sheaffer, Riverview's chairman and chief executive, stating a belief that selling the $825 million-asset company is the best way to maximize shareholder value.
The investor, which owns nearly 6.8% of Riverview's stock, said it believes Riverview could benefit from a buyer's higher-valued currency. The firm said it believes "there would be numerous suitor" for the company because of its "strong deposit base and attractive core markets." Ancora, which said it had already spoken with Sheaffer, said it would be willing to meet with Riverview's board to discuss its position in greater detail.
A call to Sheaffer wasn't immediately returned.
Riverview, which returned to profitability last year after aggressively tackling credit problems, was freed from a regulatory order earlier this year.
The company's second-quarter profit fell 55% from a year earlier, to $740,000, though most of the decline resulted from a decrease in income from recapturing loan losses. Riverview managed to cut operating expenses 16%, to $7.7 million, by significantly cutting costs associated with foreclosed properties.