-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, P4UO4QFXRLEYkjzodzzNx2udo1yAbZuV6HT2HR/ShxSFvrWpM4dnmj3+GChlg62Q OkSryySodj/8dkKayIUF0w== 0001133796-05-000188.txt : 20050823 0001133796-05-000188.hdr.sgml : 20050823 20050823112145 ACCESSION NUMBER: 0001133796-05-000188 CONFORMED SUBMISSION TYPE: SC 13D/A PUBLIC DOCUMENT COUNT: 4 FILED AS OF DATE: 20050823 DATE AS OF CHANGE: 20050823 SUBJECT COMPANY: COMPANY DATA: COMPANY CONFORMED NAME: INTERCHANGE FINANCIAL SERVICES CORP /NJ/ CENTRAL INDEX KEY: 0000755933 STANDARD INDUSTRIAL CLASSIFICATION: NATIONAL COMMERCIAL BANKS [6021] IRS NUMBER: 222553159 STATE OF INCORPORATION: NJ FISCAL YEAR END: 1205 FILING VALUES: FORM TYPE: SC 13D/A SEC ACT: 1934 Act SEC FILE NUMBER: 005-43955 FILM NUMBER: 051042874 BUSINESS ADDRESS: STREET 1: PARK 80 WEST PLAZA TWO STREET 2: ATTN INTERCHANGE STATE BANK CITY: SADDLE BROOK STATE: NJ ZIP: 07662 BUSINESS PHONE: 2017032265 MAIL ADDRESS: STREET 1: PARK 80 WEST STREET 2: PLAZA II CITY: SADDLE BROOK STATE: NJ ZIP: 07663 FORMER COMPANY: FORMER CONFORMED NAME: INTERCHANGER STATE BANK DATE OF NAME CHANGE: 19870416 FORMER COMPANY: FORMER CONFORMED NAME: INTERCHANGE FINANCIAL SERVICES CORP DATE OF NAME CHANGE: 19861209 FILED BY: COMPANY DATA: COMPANY CONFORMED NAME: SEIDMAN LAWRENCE B CENTRAL INDEX KEY: 0001026081 STATE OF INCORPORATION: NJ FILING VALUES: FORM TYPE: SC 13D/A BUSINESS ADDRESS: BUSINESS PHONE: 2015601400 MAIL ADDRESS: STREET 1: LANIDEX CENTER STREET 2: 100 MISTY LANE P O BOX 5430 CITY: PARSIPPANY STATE: NJ ZIP: 07054 SC 13D/A 1 if50867.txt SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 SCHEDULE 13D Under the Securities and Exchange Act of 1934 (Amendment No.2)* Interchange Financial Services Corporation ---------------------------------------------------------------------- Common Stock, no par value ---------------------------------------------------------------------- 458447109 ---------------------------------------------------------------------- (CUSIP Number) Lawrence B. Seidman, 100 Misty Lane, Parsippany, NJ 07054 (973) 560-1400, Ext.108 ---------------------------------------------------------------------- (Name, Address and Telephone Number of Person Authorized to Receive Notices and Communications) August 22, 2005 ---------------------------------------------------------------------- (Date of Event which Requires Filing of this Statement) If the filing person has previously filed a statement on Schedule 13G to report the acquisition that is the subject of this Schedule 13D, and is filing this schedule because of Sections 240.13d-1(e), 240.13d-1(f) or 240.13d-1(g), check the following box. [ ] *The remainder of this cover page shall be filled out for a reporting person's initial filing on this form with respect to the subject class of securities, and for any subsequent amendment containing information which would alter disclosures provided in a prior cover page. The information required on the remainder of this cover page shall not be deemed to be "filed" for the purpose of Section 18 of the Securities Exchange Act of 1934 ("Act") or otherwise subject to the liabilities of that section of the Act but shall be subject to all other provisions of the Act (however, see the Notes). This statement on Schedule 13 D which was filed on April 13, 2005 and Amendment No.1 was filed on June 29, 2005 on behalf of Seidman and Associates, L.L.C ("SAL"), Seidman Investment Partnership, L.P. ("SIP"), Seidman Investment Partnership II, L.P. ("SIPII"), Kerrimatt, L.P. ("Kerrimatt"), Broad Park Investors, L.L.C ("Broad Park"), Federal Holdings, L.L.C. ("Federal"), Pollack Investment Partnership, L.P. ("PIP"), Lawrence Seidman ("Seidman"), and Dennis Pollack ("Pollack") collectively, the ("Reporting Persons") with respect to the Reporting Persons' beneficial ownership of shares of Common stock ("the Shares") of Interchange Financial Services Corporation, a New Jersey corporation, is hereby amended as set forth below: Such statement on Schedule 13D is hereinafter referred to as the "Schedule 13D". Terms used herein which are defined in the Schedule 13D shall have their respective meanings set forth in the Schedule 13D. 4. Purpose of Transaction Attached hereto as an exhibit and included herein in its entirety is a copy of a letter, dated August 22, 2005 from Lawrence B. Seidman, to Mr. Anthony Abbate, President & Chief Executive Officer of Interchange Financial Services Corporation. After reasonable inquiry and to the best of my knowledge and belief, I certify that the information set forth in this statement is true, complete and correct. August 22, 2005 /s/ Lawrence B. Seidman ----------------- ---------------------------- Date Lawrence B. Seidman Power of Attorney pursuant to Joint Agreement dated July 26, 2004 EX-99 2 if50867exa.txt EXHIBIT-A LAWRENCE B. SEIDMAN 100 Misty Lane Parsippany, NJ 07054 (973) 560-1400, Ext. 108 lbseidman@msn.com August 22, 2005 Mr. Anthony Abbate President & Chief Executive Officer Park 80 West/Plaza II Saddle Brook, NJ 07663 Re: Interchange Financial Services Corporation. Dear Mr. Abbate: I must take issue with your characterization of Interchange Financial Services Corporation's (IFCJ) financial results in the July 27, 2005 earnings conference call as "gratifying." I believe a more apt term would be "unsatisfactory". Earnings per share in the second quarter of 2005 were 23 cents, the same level as the first quarter of 2005 and down four cents from the fourth quarter of 2004. Additionally, EPS was unchanged from the second quarter of 2003. Zero earnings growth for two years does not entitle you to boast. The lack of earnings growth eclipses all of the positive trends during the quarter, such as robust commercial loan growth and lower nonperforming assets. If IFCJ was trading in-line with or below industry multiples, then stagnant earnings would not be such a pressing issue. As of August 19, 2005, IFCJ was trading at 351% of tangible book value and 18.1x last twelve months earnings. These are premium multiples. Excluding companies that are in the process of being acquired, companies where second-quarter data is not yet available, and mutual holding companies, there are just an additional 54 banks and thrifts trading at more than both 325% of tangible book and 17.5x LTM EPS. Since IFCJ is being valued as an elite company, it ought to perform like one. Unfortunately, this is not the case. On an annualized, linked-quarter basis, only six of those 54 companies have lower earnings growth than IFCJ (See Exhibit A attached hereto). The median growth is 39.7%, light-years ahead of IFCJ's nonexistent growth. I would like to know your plans to bring IFCJ's growth rate anywhere close to that of its high performing peers. EXHIBIT A I am also troubled by the net interest margin compression experienced during the second quarter. The margin declined nine basis points from the first quarter and 15 basis points from the year-ago quarter. Using the same peer group as with earnings growth, there are only four companies that experienced a greater percentage of margin compression on a linked-quarter basis (See Exhibit B attached hereto). And although you have bragged about keeping IFCJ's margin above 4%, the fact is that more than two-thirds of those 54 companies have a higher margin (See Exhibit C attached hereto). How do you expect to grow EPS if the margin continues to compress? And how can you justify being liability sensitive when every interest rate increase for the last year has been telegraphed? You have built a valuable banking franchise in Bergen County. I commend you for being able to consistently earn around 20% on tangible capital. But because you have not been able to grow EPS, or even hold the line on the net interest margin, it is time for someone else to take over the reigns of the company. If you are serious about maximizing shareholder value, I strongly recommend that you hire an investment bank and solicit bids from potential acquirers. Very truly yours, LAWRENCE B. SEIDMAN cc: Anthony D. Andora Gerald A. Calabrese, Jr. Donald L. Correll Anthony R. Coscia John J. Eccleston David R. Ficca James E. Healey Nicolas R. Marcalus Eleanore S. Nissley Jeremiah F. O'Connor Robert P.Rittereiser John A. Schepisi William Schuber EXHIBIT A EXHIBIT A INTERCHANGE PEERS RANKED BY EPS GROWTH
PRICE/ PRICE/ ANNL LKND TANG LTM QTR BK EPS EPS GROWTH COMPANY NAME TICKER (%) (x) (%) - --------------------------------------------- ---------- ---------- ---------- ---------- TD Banknorth Inc. BNK 433 21.3 822.2 Bridge Capital Holdings BBNK 335 30.0 200.0 First Northern Community Bancorp FNRN 339 24.5 152.4 First Regional Bancorp FRGB 402 20.2 132.1 Seacoast Banking Corporation of Florida SBCF 352 21.3 128.0 Temecula Valley Bancorp, Inc. TMCV 426 18.8 112.5 Plumas Bancorp PLBC 359 25.0 92.3 Capital City Bank Group, Inc. CCBG 360 19.0 88.9 Westamerica Bancorporation WABC 596 17.7 80.0 Placer Sierra Bancshares PLSB 479 21.0 70.6 UCBH Holdings, Inc. UCBH 376 19.0 69.6 Boston Private Financial Holdings, Inc. BPFH 474 20.6 62.5 Orrstown Financial Services, Inc. ORRF 418 25.5 61.5 Southeastern Bank Financial Corporation SBFC 352 24.1 61.5 Lakeland Bancorp, Incorporated LBAI 328 17.6 57.1 S&T Bancorp, Inc. STBA 340 17.7 54.9 First Community Bancorp FCBP 565 18.2 50.0 First Indiana Corporation FINB 337 30.7 50.0 Center Financial Corporation CLFCE 397 20.0 48.5 Greater Bay Bancorp GBBK 339 17.9 47.1 Hanmi Financial Corporation HAFC 433 17.6 44.4 Community Bancorp, Inc. CMBC 359 18.3 43.5 Glacier Bancorp, Inc. GBCI 425 19.3 43.2 Synovus Financial Corp. SNV 398 19.3 43.2 Pinnacle Financial Partners, Inc. PNFP 326 32.3 42.1 Santa Lucia Bank SLNB 371 25.4 41.4 Security Bank Corporation SBKC 341 19.3 41.4 Wilshire Bancorp Inc. WIBC 412 18.2 38.1 First National Community Bancorp, Inc. FNCB 356 29.5 34.8 Northern Trust Corporation NTRS 380 20.8 31.7 Cascade Bancorp CACB 413 20.5 30.8 Silver State Bancorp SSBX 482 19.5 28.6 Waccamaw Bankshares, Inc. WBNK 444 35.8 28.6 East West Bancorp, Inc. EWBC 350 19.7 27.3 Alliance Bancshares California ABNS 359 18.2 22.2 MidSouth Bancorp, Inc. MSL 353 19.3 21.1 Bank of the Ozarks, Inc. OZRK 412 19.2 18.2 First South Bancorp, Inc. FSBK 354 17.7 17.0 Summit Bancshares, Inc. SBIT 328 18.6 16.7 Cathay General Bancorp, Inc. CATY 370 17.7 16.3 Farmers & Merchants Bancorp FMCB 326 22.7 15.0 Virginia Commerce Bancorp, Inc. VCBI 352 22.8 13.8 United Community Banks, Inc. UCBI 356 20.5 11.8 Bridge Bancorp, Inc. BDGE 376 18.4 11.1
PrivateBancorp, Inc. PVTB 481 24.0 10.8 Prosperity Bancshares, Inc. PRSP 495 17.7 9.3 Central Jersey Bancorp CJBK 428 58.2 0.0 TowneBank TOWN 342 33.6 0.0 State Street Corporation STT 372 20.1 -6.0 Pulaski Financial Corp. PULB 330 21.3 -17.4 Mission Oaks National Bank MKNB 470 37.0 -20.0 CoBiz Inc. COBZ 452 21.4 -38.1 Frederick County Bancorp, Inc. FCBI 338 29.2 -94.1 Mellon Financial Corporation MEL 733 18.1 -200.0 Interchange Financial Services Corporation IFCJ 351 18.1 0.0
EX-99 3 if50867exb.txt EXHIBIT-B EXHIBIT B INTERCHANGE PEERS RANKED BY NIM GROWTH
PRICE/ PRICE/ ANNL LKND TANG LTM QTR BK EPS NIM GROWTH COMPANY NAME TICKER (%) (x) (%) - --------------------------------------------- ---------- ---------- ---------- ---------- Mellon Financial Corporation MEL 733 18.1 37.5 Center Financial Corporation CLFCE 397 20.0 34.9 First Northern Community Bancorp FNRN 339 24.5 32.7 Farmers & Merchants Bancorp FMCB 326 22.7 22.2 Hanmi Financial Corporation HAFC 433 17.6 21.6 TD Banknorth Inc. BNK 433 21.3 21.5 First Regional Bancorp FRGB 402 20.2 21.1 Santa Lucia Bank SLNB 371 25.4 19.4 MidSouth Bancorp, Inc. MSL 353 19.3 19.2 First Community Bancorp FCBP 565 18.2 19.0 Capital City Bank Group, Inc. CCBG 360 19.0 16.5 First Indiana Corporation FINB 337 30.7 13.8 Temecula Valley Bancorp, Inc. TMCV 426 18.8 13.4 TowneBank TOWN 342 33.6 13.3 Boston Private Financial Holdings, Inc. BPFH 474 20.6 13.0 Silver State Bancorp SSBX 482 19.5 12.8 Summit Bancshares, Inc. SBIT 328 18.6 12.7 United Community Banks, Inc. UCBI 356 20.5 11.1 Frederick County Bancorp, Inc. FCBI 338 29.2 10.4 Glacier Bancorp, Inc. GBCI 425 19.3 10.2 Mission Oaks National Bank MKNB 470 37.0 8.3 Alliance Bancshares California ABNS 359 18.2 7.6 S&T Bancorp, Inc. STBA 340 17.7 7.0 Synovus Financial Corp. SNV 398 19.3 7.0 Waccamaw Bankshares, Inc. WBNK 444 35.8 6.9 Seacoast Banking Corporation of Florida SBCF 352 21.3 6.3 Wilshire Bancorp Inc. WIBC 412 18.2 6.2 Central Jersey Bancorp CJBK 428 58.2 5.9 Plumas Bancorp PLBC 359 25.0 5.7 UCBH Holdings, Inc. UCBH 376 19.0 5.5 Orrstown Financial Services, Inc. ORRF 418 25.5 5.4 Prosperity Bancshares, Inc. PRSP 495 17.7 5.3 Bridge Bancorp, Inc. BDGE 376 18.4 5.0 Cathay General Bancorp, Inc. CATY 370 17.7 4.8 State Street Corporation STT 372 20.1 3.9 Placer Sierra Bancshares PLSB 479 21.0 3.1 CoBiz Inc. COBZ 452 21.4 2.9 Southeastern Bank Financial Corporation SBFC 352 24.1 2.0 Community Bancorp, Inc. CMBC 359 18.3 1.4 Security Bank Corporation SBKC 341 19.3 0.9 Cascade Bancorp CACB 413 20.5 0.7 Bridge Capital Holdings BBNK 335 30.0 0.7 Lakeland Bancorp, Incorporated LBAI 328 17.6 -1.1 PrivateBancorp, Inc. PVTB 481 24.0 -2.3 Westamerica Bancorporation WABC 596 17.7 -3.3
Northern Trust Corporation NTRS 380 20.8 -4.5 Virginia Commerce Bancorp, Inc. VCBI 352 22.8 -5.5 Bank of the Ozarks, Inc. OZRK 412 19.2 -5.6 First South Bancorp, Inc. FSBK 354 17.7 -7.1 East West Bancorp, Inc. EWBC 350 19.7 -8.5 Greater Bay Bancorp GBBK 339 17.9 -10.0 First National Community Bancorp, Inc. FNCB 356 29.5 -13.8 Pinnacle Financial Partners, Inc. PNFP 326 32.3 -17.3 Pulaski Financial Corp. PULB 330 21.3 -19.9 Interchange Financial Services Corporation IFCJ 351 18.1 -8.7
EX-99 4 if50867exc.txt EXHIBIT-C EXHIBIT C INTERCHANGE PEERS RANKED BY NET INTEREST MARGIN
PRICE/ PRICE/ NET TANG LTM INTEREST BK EPS MARGIN COMPANY NAME TICKER (%) (x) (%) - --------------------------------------------- ---------- ---------- ---------- ---------- Temecula Valley Bancorp, Inc. TMCV 426 18.8 6.78 First Community Bancorp FCBP 565 18.2 6.17 Bridge Capital Holdings BBNK 335 30.0 5.98 First Regional Bancorp FRGB 402 20.2 5.98 First Northern Community Bancorp FNRN 339 24.5 5.69 Cascade Bancorp CACB 413 20.5 5.64 Santa Lucia Bank SLNB 371 25.4 5.63 Community Bancorp, Inc. CMBC 359 18.3 5.60 Silver State Bancorp SSBX 482 19.5 5.47 Mission Oaks National Bank MKNB 470 37.0 5.43 Placer Sierra Bancshares PLSB 479 21.0 5.17 Farmers & Merchants Bancorp FMCB 326 22.7 5.14 Capital City Bank Group, Inc. CCBG 360 19.0 5.05 MidSouth Bancorp, Inc. MSL 353 19.3 5.03 Plumas Bancorp PLBC 359 25.0 5.02 First South Bancorp, Inc. FSBK 354 17.7 4.97 Hanmi Financial Corporation HAFC 433 17.6 4.88 Bridge Bancorp, Inc. BDGE 376 18.4 4.87 Center Financial Corporation CLFCE 397 20.0 4.86 Westamerica Bancorporation WABC 596 17.7 4.83 Alliance Bancshares California ABNS 359 18.2 4.81 Wilshire Bancorp Inc. WIBC 412 18.2 4.57 Summit Bancshares, Inc. SBIT 328 18.6 4.55 Orrstown Financial Services, Inc. ORRF 418 25.5 4.54 Security Bank Corporation SBKC 341 19.3 4.45 Frederick County Bancorp, Inc. FCBI 338 29.2 4.34 TowneBank TOWN 342 33.6 4.34 Greater Bay Bancorp GBBK 339 17.9 4.28 Virginia Commerce Bancorp, Inc. VCBI 352 22.8 4.28 Bank of the Ozarks, Inc. OZRK 412 19.2 4.21 Cathay General Bancorp, Inc. CATY 370 17.7 4.21 CoBiz Inc. COBZ 452 21.4 4.17 Central Jersey Bancorp CJBK 428 58.2 4.15 East West Bancorp, Inc. EWBC 350 19.7 4.14 TD Banknorth Inc. BNK 433 21.3 4.11 S&T Bancorp, Inc. STBA 340 17.7 4.09 Synovus Financial Corp. SNV 398 19.3 4.09 United Community Banks, Inc. UCBI 356 20.5 4.08 Glacier Bancorp, Inc. GBCI 425 19.3 4.01 Southeastern Bank Financial Corporation SBFC 352 24.1 3.95 Seacoast Banking Corporation of Florida SBCF 352 21.3 3.90 First Indiana Corporation FINB 337 30.7 3.89 Boston Private Financial Holdings, Inc. BPFH 474 20.6 3.81 Prosperity Bancshares, Inc. PRSP 495 17.7 3.81
Lakeland Bancorp, Incorporated LBAI 328 17.6 3.76 UCBH Holdings, Inc. UCBH 376 19.0 3.67 Pinnacle Financial Partners, Inc. PNFP 326 32.3 3.55 PrivateBancorp, Inc. PVTB 481 24.0 3.53 Waccamaw Bankshares, Inc. WBNK 444 35.8 3.52 First National Community Bancorp, Inc. FNCB 356 29.5 3.36 Pulaski Financial Corp. PULB 330 21.3 3.25 Mellon Financial Corporation MEL 733 18.1 2.10 Northern Trust Corporation NTRS 380 20.8 1.74 State Street Corporation STT 372 20.1 1.04 Interchange Financial Services Corporation IFCJ 351 18.1 4.05
-----END PRIVACY-ENHANCED MESSAGE-----