BSD Meeting Is Calm Despite Bid Rejection

BSD Bancorp officers conducted a relatively calm annual meeting Tuesday afternoon, given the fireworks that might have developed in the wake of First National Corp.’s recent unsuccessful attempts to buy the Bank of San Diego’s assets from BSD Bancorp.

BSD directors on Friday rejected First National’s offer to acquire the Bank of San Diego for $600,000 above its book value of $6.7 million. BSD previously had rejected First National’s bid to acquire the bank for $300,000 over its book value.

First National has “no current plans to proceed any farther” in its bid for Bank of San Diego, according to First National Chairman Robert D. Richley. “We made what we felt was a good economic offer, and they rejected it.”

Only one shareholder among the several hundred present at BSD’s annual meeting suggested that shareholders might benefit financially if the holding company were to sell some of its six banking subsidiaries.

Instead of defending their decision to turn down First National’s offers, BSD directors used words like explosive and dynamic to describe the future of the bank holding company and its Bank of San Diego subsidiary.

Chairman James S. Brown and Chief Operating Officer Vito J. Guarino repeatedly underscored the key role that Bank of San Diego is expected to play in the holding company’s future.

Brown told shareholders that BSD Bancorp would be “foolish to go out and solicit offers.”

“Anytime (a bank) is perceived to be experiencing trouble you get bargain hunters that come and make ridiculous offers,” said Brown, in a reference to First National’s recent offer to acquire Bank of San Diego.

Brown said Monday that “there continues to be a public misperception, which has evidently been erroneously embraced by (First National), that we are a troubled company.”

BSD shareholders approved the holding company’s reincorporation in Delaware and reelected Brown, Guarino, Alan Lord, Ward W. Deems, Robert Graham, Thomas E. Hom and George J. Kuhrts III to BSD’s board.