SCHEDULE 14A INFORMATION
Proxy Statement Pursuant to Section 14(a) of
the Securities Exchange Act of 1934 (Amendment No. )
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/ / Preliminary Proxy Statement
/ / Confidential, for Use of the Commission Only (as permitted by Rule
14a-6(e)(2))
/ / Definitive Proxy Statement
/X/ Definitive Additional Materials
/ / Soliciting Material Pursuant to Section 240.14a-11(c) or Section
240.14a-12
PALFED, INC.
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(Name of Registrant as Specified In Its Charter)
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(Name of Person(s) Filing Proxy Statement, if other than the Registrant)
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PALFED, INC.
107 Chesterfield Street S.
Aiken, South Carolina 29801
John C. Troutman
President and CEO
(803) 642-1433
April 8, 1997
FOR IMMEDIATE RELEASE
INSTITUTIONAL SHAREHOLDER SERVICES RECOMMENDS
AGAINST MID-ATLANTIC'S PROPOSAL TO SELL PALFED
AIKEN, South Carolina, April 8, 1997 -- John C. Troutman, President and CEO
of PALFED, Inc. ("PALFED" or the "Company") announced today that
Institutional Shareholder Services, Inc. ("ISS"), an independent shareholder
advisory firm, has advised PALFED's institutional shareholders which
subscribe to their service to support PALFED management and vote against a
shareholder proposal sponsored by Mid-Atlantic Investors ("Mid-Atlantic").
Mr. Troutman said, "We are very pleased to receive the support of ISS, whose
evaluation of PALFED's performance and the issues raised by Mid-Atlantic's
proposal provide the independent advice that even Mid-Atlantic surely cannot
ignore." Mr. Troutman noted that ISS reviews shareholder proposals on a
case-by-case basis, taking into account company performance and other
fundamental issues, including a strategic plan of action to enhance
shareholder value.
The ISS report noted that PALFED "has acquired new banking offices and
achieved technological upgrades at a reasonable cost, and that long-term
shareholders would suffer if the Company were put in play." The report also
noted that shareholder returns at PALFED have increased over five years and
have outperformed the NASDAQ Financial Stock Index by 25.5% and the S&P 500
Index by 15.2%.
ISS, based in Bethesda, Maryland, is a leading independent advisor to several
hundred institutional investors and provides voting recommendations for proxy
contests, corporate governance proposals and other shareholder related issues.
PALFED, INC. is a South Carolina corporation whose principal subsidiary,
Palmetto Federal Savings Bank of South Carolina, operates twenty-two banking
and seven mortgage lending offices in South Carolina and one mortgage lending
office in Georgia. PALFED's common stock is traded in the Nasdaq National
Market System under the symbol "PALM".