Anchor Bank’s holding company has hired an investment bank to explore strategic alternatives, including a sale or merger, the Lacey-based company said Monday.
Anchor Bank’s holding company has hired an investment bank to explore strategic alternatives, including a sale or merger, the Lacey-based company said Monday.
Anchor Bancorp announced the move a couple of weeks after coming under pressure from activist investor Joseph Stilwell, a prolific and often sharp-tongued critic of small banks’ performance who has previously targeted First Savings Bank Northwest and Sound Community Bank. His funds report owning 9.8 percent of its stock.
“We are calling for a sale,” Stilwell wrote in a July 7 regulatory filing, later adding that “continued poor performance highlights the reality that Anchor should now be sold.“
The letter, addressed to Anchor CEO Jerald Shaw, cited a meeting between Stilwell and the bank’s management two years ago, and a subsequent meeting last month.
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“In our view, it is not in shareholders’ best interests for management and the board to work 2 ½ more years towards a marginally better — but still inadequate — ROE,” he wrote.
Anchor’s announcement, which did not directly address Stilwell’s criticism, stressed that hiring Keefe Bruyette & Woods to look at “various strategic options and operating scenarios intended to maximize shareholder value“ does not mean it will carry out any transaction.
Anchor Bank has 11 full-service banking offices located within Grays Harbor, Thurston, Lewis, Pierce and Mason counties, according to its website.