Hurricane Sandy has delayed shareholder votes on two community bank deals on the East Coast.
Pending bank buyers Independent Bank Corp. (INDB) in Rockland, Mass., and C1 Bank in St. Petersburg, Fla., are the affected sellers.
Independent said Wednesday that it will provide shareholders of its target, Central Bancorp (CEBK) in Somerville, Mass., an extra day to vote on the deal. Central’s shareholders now have until Friday at 5 p.m. to vote “due to the weather event impacting the Northeastern United States in recent days,” the companies said in a joint release. The deal, which has already received regulatory approvals, would create a $5.7 billion-asset bank in Massachusetts.
Shareholders at the $1.3 billion-asset U.S. Century Bank in Doral, Fla., were scheduled for a meeting Tuesday to vote on the company’s sale to the $900 million-asset C1 Bank. But the meeting has been delayed for 10 to 14 days, said Ileana C. Portal, a spokeswoman at U.S. Century.
Financial advisors in New York City could not fly down to Florida for the Tuesday meeting because of Sandy, Portal said. She added that there was also “an issue pending” with the merger, though no further details were given.
“I don’t have specifics about the issue . . . but there is an understanding that it does need to be resolved,” she said.
The South Florida Business Journal recently reported that U.S. Century’s shareholders were disgruntled about the deal and lack of details from executives.
C1 Bank said in August that it planned to acquire the under-capitalized U.S. Century, inject $100 million in capital and redeem its $50 million in Troubled Asset Relief Program funds. The deal, which would rehabilitate one of Florida’s largest struggling banks, was originally scheduled to close by yearend. It’s unclear whether recent complications will delay the closing date.
C1 Bank’s chief executive, Trevor Burgess, declined to comment.