TOM VENABLES – True success story
Just 10 months after Lighthouse Bank took its first steps into the Internet banking world, Brookline Bancorp has decided to divest itself of the company.
The sale was announced to shareholders during Brookline Bancorp’s annual meeting on April 19. Although postings on Internet discussion boards on the move praise the decision to shed Lighthouse, the announcement had little effect on the company’s stocks, which have been hovering above $13.50 for most of the month, reached an adjusted close of $14.32 on April 12 and closed at $13.38 on April 26.
The company had 2001 after-tax losses of $751,000 “related to Lighthouse,” according to a press release. However, “average earning assets were $130 million, or 14 percent higher in the first quarter of 2001 compared to the first quarter of 2000. Of this increase, $50 million related to the activities of Lighthouse,” the release stated.
“We have continued to do tremendously in terms of acquiring a customer base and meeting and exceeding all of our growth projections,” said Tom Venables, president and chief executive officer of Lighthouse. “It’s been a true success story.”
The bank has 17,000 accounts held by 10,000 individual customers with over $65 million in deposits. Total assets are over $85 million, said Venables.
Brookline is working with Lighthouse, according to Venables, to find the right purchasers.
“The investment bankers [Fox-Pitt Kelton of New York] that we hired are very skillful in this regard. They specialize in the financial services industry, so that’s why we selected them. They’re putting together information and having confidential conversations with any number of potential acquirers. The thing is that the business that we’re generating here has been absolutely tremendous,” said Venables.
Both the release and Venables expressed confidence that suitable buyers would be found for the Internet bank. But if by chance it can’t be sold, “then our options range from keeping the current situation to blending Lighthouse and Brookline Savings Bank into one bank. But at this time, our efforts are concentrated on securing new financing and a new ownership structure for Lighthouse Bank,” said
Venables.
