Valley Community Bank (fka VCBC)

[56Chevy]

FNB Bancorp CEO could have 'Godfather' moment if bank gets 'generous' buyout offer

Oct 9, 2014, 2:44pm PDT

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South San Francisco-based FNB Bancorp's CEO Tom McGraw says he'd consider joining forces with Bank of Marin or Mechanics Bank at the right price.

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"Consolidation within the industry is a reality and I see no signs of that abating. To loosely paraphrase 'The Godfather,' if somebody makes us an offer we can’t refuse, that would generously reward our shareholders, then yeah, we would give that kind of offer very serious consideration," McGraw said.

That's the posture any public company takes, given a board's fiduciary duty to shareholders. But it's important to remember the powerful efficiencies gained in combining banks, which could support a compelling price from the right buyer.

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FNB is currently working on its own acquisition. The bank, which purchased Oceanic Bank in 2012, plans to buy Pleasanton-based Valley Community Bank.

Regulators plan to hold a "fairness hearing" on the FNB-Valley deal in San Francisco on Oct. 23. One Valley shareholder, Stephen Taylor Jr., has proposed to purchase up to 40 percent of Valley's shares he doesn't already own at a higher price than FNB plans to pay, according to a notice for the public hearing.

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http://www.bizjournals.com/sanfrancisco/blog/2014/10/fnb-bancorp-ceo-bank-mergers-mechanics-bank-marin.html?page=all

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"That's the posture any public company takes, given a board's fiduciary duty to shareholders.."

Well VCBC's board certainly didn't take this posture! How is FNB's offer for $3 & change better than Taylor's offer of $4.12!