Seidman continues to question Massbank's operations

By Lisa Kerner

Charlotte, N.C., Nov. 2 - Massbank Corp. investor Lawrence B. Seidman reiterated his recommendation that the company accelerate share repurchases and consider a possible Dutch auction in a letter to company chairman and president Gerard H. Brandi.

The Nov. 1 letter was included in a schedule 13D filing with the Securities and Exchange Commission.

Seidman believes "dividends should be higher, in the form of both quarterly and special payments." The investor took issue with the 22% rise in non-interest expense reported in the third quarter.

"Management should not be receiving incentive payments for substandard performance. Instead, you should be giving shareholders an incentive to buy and hold the stock," Seidman wrote.

It was previously reported that another Massbank shareholder, Private Capital Management, LP, urged Massbank to "move expeditiously" to independently review and address the issues raised by Seidman in an earlier SEC filing.

Seidman 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.

Massbank is a Reading, Mass., bank holding company.

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