Driver Management Co. LLC, a New York City investment partnership that owns more than 5% of the outstanding shares of First United Corp., sent letters to fellow shareholders, urging them to consider voting for three people it wants to serve on First United Corp.’s board of directors.
Since September, Driver has lobbied Oakland, Md.-based First United, the parent company of First United Bank & Trust, to explore a sale. Driver has said First United stock is undervalued and the board is overly focused on remaining independent.
“Driver invested in First United for the simple reason: We believe that tremendous value can be created for shareholders if the Company’s Board of Directors (the ‘Board’) fulfills its obligation to maximize shareholder value by pursuing a sale of the company to one of the several viable acquirers in the region,” the Driver letter said.
“Unfortunately, the Board looks to be doing everything it can to dismiss and ignore our calls to action and preserve its director positions,” the letter noted.
Driver alleges First United’s board lacks adequate bank experience, does not have interest in shareholders, is anti-shareholder governance, has no meaningful merger and acquisitions experience and that members have been on the board too long.
Driver’s nominees will be voted on at the First United shareholder meeting. No date was announced for the meeting.
In a written statement to The Dominion Post, a First United spokesman said, “We welcome input from all shareholders interested in helping us to maximize the value of their company, but we are dismayed by Mr. Cooper’s [Abbott Cooper, founding managing member of Driver] use of personal attacks and misleading claims as he tries to force First United into a sale, regardless of the long-term interests of other shareholders.”
The statement goes on: “Contrary to his false narrative, First United’s returns have outperformed its peers and the broader market under the current leadership team, and the bank remains focused on sustainably growing the business and serving our valued customers and the communities we operate in.”
Locally, First United Bank & Trust has locations in Suncrest Towne Centre, Star City and Sabraton. It also is in Bridgeport, Keyser, Martinsburg, Piedmont, Inwood and Falling Waters. First United has $1.4 billion in assets and 25 locations in West Virginia and Maryland.
For the third quarter that ended Sept. 30, First United had a net income of $4.5 million, or $3.4 million, excluding insurance proceeds. For the third quarter of 2018, First United earned $2.8 million.
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