Second shareholder finds fault with Massbank management, CEO

By Lisa Kerner

Charlotte, N.C., Sept. 11 - Massbank Corp. investor Private Capital Management, LP said it received a "curt, three-line written response" from company president and chief executive officer Gerard Brandi after voicing concerns in an Aug. 22 letter to the company.

"In light of the company's perfunctory response and apparent lack of interest in addressing the serious concerns raised by PCM and other significant shareholders, PCM is currently reviewing a number of courses of action focused on protecting and enhancing shareholder value including, among other things, engaging in discussions with other shareholders, third parties and, if invited to do so, the company," a schedule 13D filing with the Securities and Exchange Commission stated.

Private Capital had urged Massbank to "move expeditiously" to independently review and address the issues raised by shareholder Lawrence Seidman in a separate schedule 13D filing.

"Like Mr. Seidman, we have fundamental concerns regarding current management's commitment and ability to manage the company in the best interest of its shareholders," Private Capital said in its Aug. 22 letter.

It was previously reported that Seidman, a 5.83% shareholder, had asked Massbank's board to consider the following:

• An accelerated share purchase program, including a possible Dutch auction;

• A new management team "capable of making proper loans"; and

• A sale of the institution.

Private Capital bought 2,500 shares of the Reading, Mass., bank holding company between July 31 and Aug. 29 priced between $33.65 and $34.25 each. The reporting persons own 416,934 shares, or 9.7%, of Massbank, according to the SEC filing.

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