Hampden Bancorp, Inc. (the “Company”) (NASDAQ - HBNK), which is the holding company for Hampden Bank (the “Bank”), today issued the following statement regarding the reports of two leading proxy advisory services, Glass Lewis & Co. (Glass Lewis), and Institutional Shareholder Services (ISS), that recommended that stockholders of the Company vote “AGAINST” the shareholder proposal requesting the board of directors to explore avenues to enhance shareholder value through an extra-ordinary transaction (defined here as a transaction not in the ordinary course of business operations) including, but not limited to, selling or merging the Company with another institution.
“We appreciate that these two highly respected firms have recommended that our shareholders vote as recommended by our board on this issue. Hampden remains committed to maximizing the Company’s value for all stockholders. This commitment has been demonstrated in part by our quarterly dividend, by our periodic stock buyback programs, by investments in new technology and by recent improvements at various Hampden branches to enhance efficiency, support expanded services and position Hampden Bancorp for growth and long-term profitability that will enhance stockholder value.”
In making their recommendation regarding the shareholder proposal, ISS concluded the following:
“With respect to stock performance, while the company's one year TSR has underperformed its peers and the Russell 3000 index, its long-term TSR performance (three- and five-year TSRs) remains strong. Additionally, the company's TSR to date (+1.09 percent) has also outperformed the SNL U.S. Thrift, the NASDAQ Bank, and the KBW indices, which all posted negative five-year returns. Compared to last year, net income, total assets, and provision for loan losses have also improved. Also, while the company's ratios have declined in the past five years, as of June 30, 2012, the most recent notification from the FDIC categorized the Bank as well-capitalized under the regulatory framework for prompt corrective action.
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