Sales price, closing set for Fumo's bank

After PSB Bancorp Inc. chairman Vincent J. Fumo and another executive agreed to cut their exit payments in half, PSB and a buyer finally have set a sales price and closing date.

The buyer, Conestoga Bancorp, will pay $16.72 a share, or $92 million, for PSB, which operates 13 branches under the name First Penn Bank. The cash deal is scheduled to close Monday, PSB and Conestoga said yesterday.

The deal was struck after Fumo agreed to accept about $2.7 million as his golden-parachute payment - down from the $6.3 million he was previously set to get.

PSB chief executive officer Anthony DiSandro also saw his parachute cut. He is now to get $2.9 million, also down from $6.3 million.

As big shareholders in the Philadelphia bank, Fumo will still make out handsomely from the sale of his stock, as will DiSandro. Fumo is in line to receive $13 million for his stock and options.

The purchase by Chester County-based Conestoga was announced more than six months ago, but the deal has languished while the two sides argued over the price. The tentative pact had called for Conestoga to pay between $16.34 and $17 a share.

In a joint news release, the banks said that Conestoga, as part of "ongoing due diligence," had "identified certain issues" that pushed it two months ago to seek a cut in price.

The statement did not say what the issues were, only that PSB disagreed with Conestoga's position.

State Sen. Fumo (D., Phila.), whose grandfather founded PSB, was indicted in early February on federal charges of obstruction of justice and the misuse of state and nonprofit money. He has said he is not guilty. The charges were not related to PSB.

Conestoga president Richard A. Elko said he could not comment when asked whether the indictment was among the issues that affected the price negotiations.

Fumo and DiSandro did not return calls seeking comment.