Security National Bank's shareholders have rejected a takeover proporal by NS&T Bankshares, opting for continues independence instead.
"Since fewer than the minimum of 160,000 shares were tendered, the NS&T board of directors decided not to continue or extend the offer," NS&T Chairman Joseph H. Riley announced to a special meeting of NS&T shareholders.
Riley would not say how many shares had been tendered, only that it fell short of the 40 percent minimum NS&T said had to be offered before it would be obligated to buy the stock tendered a $62 a share, a price that Security National's directors had spurned as too low.
At Security National, the city's eighth-largest bank in terms of deposits, officials expressed relief that the uninvited takeover attempt had failed. "For a small bank, it's a traumatic thing," said Security National President Thomas J. Schaefer.
For Schaefer the news meant a break in "burning the candle at both ends -- working on the tender offer at one end and the merger at the other, and trying to keep a smiling face at the bank and maintain profitability."
The merger mentioned is with the smaller Washington Bank. Security announced that step July 22 as part of a number of measures taken to block any potential hostile takeover attempts.
Schaefer said the merger may be completed by the end of the year.
Riley made his announcement at a special shareholders meeting at which investors approved a name change for the bank as a step toward a reorganization. The bank becomes NS&T Bank National Association, which will be a subsidiary of NS&T Bankshares, a holding company already approved by the shareholders.
Riley said the bank changed its name to avoid confusion among some potential customers who through National Savings and Trust Co. might be a savings and loan association.