PL Capital Group Announces Its Intent to Nominate Two Directors to the Board of Synergy Financial
February 01 2006 - 3:36PM
PR Newswire (US)
CHATHAM, N.J., Feb. 1 /PRNewswire/ -- On January 31, 2006, PL
Capital Group principal John W. Palmer announced his intent to
nominate Daniel P. Spiegel and Daniel M. Eliades to serve as
directors of Synergy Financial Group, Inc. (NASDAQ:SYNF), at
Synergy's 2006 Annual Meeting of Stockholders. The PL Capital Group
beneficially owns 1,129,015 shares of Synergy (9.8% of the
outstanding shares) and is Synergy's largest shareholder. PL
Capital Group principal Richard Lashley noted, "We are pleased to
nominate two highly qualified candidates, both with significant
professional credentials as well as local ties to the communities
served by Synergy." Mr. Lashley added, "we are taking on this task
on behalf of all shareholders because Synergy has not performed the
way we had hoped during the past two years. Synergy's Return on
Equity (ROE) was less than 5% in both 2004 and 2005, well below the
average thrift which had a ROE of 12.8% and the average publicly
traded thrift which had a 12.4% ROE during that same period.
Synergy's Return on Assets (ROA) was also less than one-half of the
average thrift ROA in 2004 and 2005. Synergy's core deposits also
declined in both 2005 and 2004." Mr. Palmer also noted, "We are
also disappointed that despite this performance, over the past
three years Synergy's directors and officers have received
compensation and benefits with a current value of over $14 million,
which exceeds the total amount of net income earned by Synergy ($12
million) during the same period. Each and every incumbent director
has received in excess of $500,000 of compensation and benefits
value during this period." The PL Capital Group nominees would like
to see Synergy allocate $20 million of capital to stock buybacks,
particularly in light of the low ROE currently generated by
Synergy. They would also like to see changes made in numerous
aspects of Synergy's corporate governance, as disclosed in PL
Capital Group's proxy statement filed with the Securities and
Exchange Commission. This press release does not constitute a
solicitation of proxies for any meeting of Synergy's stockholders.
Such solicitation is being made only pursuant to proxy materials
complying with the requirements of Section 14(a) of the Securities
Exchange Act of 1934, as amended, and the rules and regulations
thereunder. DATASOURCE: PL Capital Group CONTACT: Richard Lashley,
+1-973-360-1666, , for PL Capital Group
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