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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 13D
Under the Securities Exchange Act of 1934
(Amendment No. 3)*
Foothill Independent Bancorp
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(Name of Issuer)
Common Stock, par value $.01
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(Title of Class of Securities)
344905104
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(CUSIP Number)
Thomas M. Cerabino, Esq.
Willkie Farr & Gallagher
787 Seventh Avenue
New York, New York 10019
(212) 728-8000
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(Name, Address and Telephone Number of
Person Authorized to Receive Notices and Communications)
November 2, 1998
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(Date of Event which Requires Filing of this Statement)
If the filing person has previously filed a statement on Schedule 13G to report
the acquisition which is the subject of this Schedule 13D, and is filing this
schedule because of Rule 13d-1(b)(3) or (4), check the following box. [__]
Check the following box if a fee is being paid with the statement (A fee is not
required only if the reporting person: (1) has a previous statement on file
reporting beneficial ownership of more than five percent of the class of
securities described in Item 1; and (2) has filed no amendment subsequent
thereto reporting beneficial ownership of five percent or less of such class.)
(See Rule 13d-7.)
Note: Six copies of this statement, including all exhibits, should be filed with
the Commission. See Rule 13d-l(a) for other parties to whom copies are to be
sent.
*The remainder of this cover page shall be filled out for a reporting person's
initial filing on this form with respect to the subject class of securities, and
for any subsequent amendment containing information which would alter
disclosures provided in a prior cover page.
The information required on the remainder of this cover page shall not be deemed
to be "filed" for the purpose of Section 18 of the Securities Exchange Act of
1934 ("Act") or otherwise subject to the liabilities of that section of the Act
but shall be subject to all other provisions of the Act (however, see the
Notes).
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SCHEDULE 13D
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CUSIP No. 344905104 Page 2 of 9 Pages
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1 NAME OF REPORT PERSONS
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Basswood Partners, L.P.
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP
(a) [ ]
(b) [X]
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3 SEC USE ONLY
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4 SOURCE OF FUNDS*
WC
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5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDING IS REQUIRED PURSUANT
TO ITEMS 2(d) or 2(e)
[ ]
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6 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
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NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY 551,821
OWNED BY EACH
REPORTING
PERSON WITH
-----------------------------------------------------------------
8 SHARED VOTING POWER
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9 SOLE DISPOSITIVE POWER
551,821
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10 SHARED DISPOSITIVE POWER
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11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH PERSON
551,821
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12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES*
[ ]
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13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
9.22 %
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14 TYPE OF REPORTING PERSON*
PN
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*SEE INSTRUCTIONS BEFORE FILLING OUT!
INCLUDE BOTH SIDES OF THE COVER PAGE, RESPONSES TO ITEMS 1-7 2 of 9
(INCLUDING EXHIBITS) OF THE SCHEDULE, AND THE SIGNATURE ATTESTATION.
<PAGE>
SCHEDULE 13D
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CUSIP No. 344905104 Page 3 of 9 Pages
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1 NAME OF REPORT PERSONS
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Basswood Management, Inc.
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP
(a) [ ]
(b) [X]
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3 SEC USE ONLY
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4 SOURCE OF FUNDS*
WC
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5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDING IS REQUIRED PURSUANT
TO ITEMS 2(d) or 2(e) [ ]
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6 CITIZENSHIP OR PLACE OF ORGANIZATION
Delaware
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NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY 551,821
OWNED BY EACH
REPORTING
PERSON WITH
-----------------------------------------------------------------
8 SHARED VOTING POWER
-----------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
551,821
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10 SHARED DISPOSITIVE POWER
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11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH PERSON
551,821
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12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES*
[ ]
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13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
9.22%
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14 TYPE OF REPORTING PERSON*
CO
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*SEE INSTRUCTIONS BEFORE FILLING OUT!
INCLUDE BOTH SIDES OF THE COVER PAGE, RESPONSES TO ITEMS 1-7 3 of 9
(INCLUDING EXHIBITS) OF THE SCHEDULE, AND THE SIGNATURE ATTESTATION.
<PAGE>
SCHEDULE 13D
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CUSIP No. 344905104 Page 4 of 9 Pages
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1 NAME OF REPORT PERSONS
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Matthew Lindenbaum
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP
(a) [ ]
(b) [X]
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3 SEC USE ONLY
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4 SOURCE OF FUNDS*
AF
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5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDING IS REQUIRED PURSUANT
TO ITEMS 2(d) or 2(e)
[ ]
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6 CITIZENSHIP OR PLACE OF ORGANIZATION
United States
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NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY 551,821
OWNED BY EACH
REPORTING
PERSON WITH
-----------------------------------------------------------------
8 SHARED VOTING POWER
-----------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
551,821
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10 SHARED DISPOSITIVE POWER
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11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH PERSON
551,821
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12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES*
[ ]
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13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
9.22%
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14 TYPE OF REPORTING PERSON*
IN
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*SEE INSTRUCTIONS BEFORE FILLING OUT!
INCLUDE BOTH SIDES OF THE COVER PAGE, RESPONSES TO ITEMS 1-7 4 of 9
(INCLUDING EXHIBITS) OF THE SCHEDULE, AND THE SIGNATURE ATTESTATION.
<PAGE>
SCHEDULE 13D
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CUSIP No. 344905104 Page 5 of 9 Pages
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1 NAME OF REPORT PERSONS
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
Bennett Lindenbaum
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2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP
(a) [ ]
(b) [X]
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3 SEC USE ONLY
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4 SOURCE OF FUNDS*
AF
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5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDING IS REQUIRED PURSUANT
TO ITEMS 2(d) or 2(e) [ ]
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6 CITIZENSHIP OR PLACE OF ORGANIZATION
United States
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NUMBER OF 7 SOLE VOTING POWER
SHARES
BENEFICIALLY 551,821
OWNED BY EACH
REPORTING
PERSON WITH
-----------------------------------------------------------------
8 SHARED VOTING POWER
-----------------------------------------------------------------
9 SOLE DISPOSITIVE POWER
551,821
-----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
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11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH PERSON
551,821
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12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES*
[ ]
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13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
9.22%
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14 TYPE OF REPORTING PERSON*
IN
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*SEE INSTRUCTIONS BEFORE FILLING OUT!
INCLUDE BOTH SIDES OF THE COVER PAGE, RESPONSES TO ITEMS 1-7 5 of 9
(INCLUDING EXHIBITS) OF THE SCHEDULE, AND THE SIGNATURE ATTESTATION.
<PAGE>
The purpose of this Amendment No. 3 to the previously filed Schedule
13D is to report (i) that the beneficial ownership of Basswood Partners, L.P.
("Basswood"), Basswood Management, Inc., Matthew Lindenbaum and Bennett
Lindenbaum (together, the "Reporting Persons") in the Common Stock, $.01 par
value per share (the "Shares") of Foothill Independent Bancorp (the "Company")
has increased from 8.43% to 9.22% of the Shares outstanding and (ii) a change in
the disclosure set forth in Item 4 (Purpose of Transaction) as more fully
described below.
Item 1. Security and Issuer
- ----------------------------
No change.
Item 2. Identity and Background
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This Statement has been filed on behalf of the Reporting Persons,
namely Basswood, a Delaware limited partnership, Matthew Lindenbaum and Bennett
Lindenbaum, the sole principals of Basswood Management, Inc., Basswood's general
partner, and Basswood Management, Inc. The principal business address of each of
the Reporting Persons is 645 Madison Avenue, 10th Floor, New York, New York
10022. Basswood is the general partner of Basswood Financial Partners, L.P. (the
"Partnership"), and advises Basswood International Fund, Inc., a Cayman Islands
exempted company ("Basswood International"), Whitewood Financial Partners, L.P.,
a Delaware limited partnership ("Whitewood"), and certain managed accounts
(including 1994 Garden State L.P., a Delaware limited partnership ("Garden
State") and Jet I, L.P., a Delaware limited partnership ("Jet I")), which may
from time to time acquire Shares. The Partnership, Basswood International,
Whitewood, Garden State and Jet I are referred to collectively as the
"Accounts." As of the date hereof, all 551,821 Shares are owned by one or more
of the Accounts. From time to time, Shares may be sold between Accounts in the
ordinary course of investment business.
Messrs. Matthew Lindenbaum and Bennett Lindenbaum also have
investment discretion over certain other managed accounts which do not currently
own Shares but which may in the future buy and sell Shares from time to time.
During the last five years, none of the Reporting Persons nor any of
the Accounts has been (i) convicted in a criminal proceeding (excluding traffic
violations or similar misdemeanors) or (ii) a party to a civil proceeding of a
judicial or administrative body of competent jurisdiction and as a result of
such proceeding was or is subject to a judgment, decree or final order enjoining
future violations of, or prohibiting or mandating activities subject to, United
States federal or state securities laws or finding any violations with respect
to such laws.
Each of Messrs. Matthew Lindenbaum and Bennett Lindenbaum is a
citizen of the United States.
Item 3. Source and Amount of Funds or Other Considerations
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As of the date hereof, each of the Reporting Persons may be deemed
to beneficially own 551,821 Shares, all of which Shares are held by the
Accounts. The Shares have been purchased in open market transactions at an
aggregate cost of $5,284,086. The funds for the purchase of the Shares held by
the Accounts have come from the various Accounts' respective working capital. No
leverage was used to purchase any of the Shares. However, one or more of the
Accounts' working capital may include the proceeds of margin loans entered into
in the ordinary course of business with Goldman, Sachs & Co., such loans being
secured by the securities owned by such Accounts.
Item 4. Purpose of Transaction
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All Shares beneficially owned by the Reporting Persons were acquired
for, and are being held for, investment purposes.
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Based on current publicly available information, Basswood currently
beneficially owns 9.22% of the Company's outstanding Shares. Basswood has been a
shareholder of the Company since October 2, 1996. Based on its disappointment
with the financial performance of its investment in the Company relative to
relevant benchmark indices and returns of comparable companies in the banking
industry, Basswood has become convinced that the best means of maximizing value
for all of the Company's shareholders is to sell the Company. Moreover, the
Company has not made available to Basswood, through its public reports and
statements or otherwise, information indicating any reasonable prospect for a
material improvement in the Company's financial performance.
Basswood believes that there are likely to be a number of larger
institutions that would have a serious interest in purchasing the Company.
Recent transactions in the banking industry, including several involving
California banking institutions, suggest that through a sale, the Company's
shareholders would likely receive a substantial premium over the current market
price of the Shares. Basswood believes the shareholders cannot reasonably expect
to achieve, on a present value basis, the same premuim if the Company continues
its current financial performance. In Basswood's view, a failure by the
Company's Board of Directors to consider a sale of the Company would be
inconsistent with its fiduciary obligations to the Company's shareholders.
The Reporting Persons intend to communicate with other shareholders
on matters relating to our mutual interests as shareholders, including but not
limited to communicating with shareholders regarding (i) the financial
underperformance by the Company in the recent past, (ii) methods of improving
the Company's future financial performance, (iii) exploring ways of maximizing
the value of the market price of the Shares by way of a sale of the Company and
(iv) the nomination of new candidates to the Board of Directors who will explore
ways of maximizing shareholder value.
Except as discussed above, the Reporting Persons otherwise have no
plan or proposal which relates to, or would result in, any of the actions
enumerated in Item 4 of the instructions to Schedule 13D.
Item 5. Interest in Securities of the Company
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(a)-(b) As of the date hereof, the Reporting Persons each may be deemed to be
the beneficial owners of 551,821 Shares. Based on a communication from the
Company dated October 19, 1998, the Company informed Basswood that there were a
total of 5,985,699 Shares of Common Stock outstanding as of September 30, 1998.
Therefore, the Reporting Persons collectively may be deemed to be the beneficial
owners of approximately 9.22% of the outstanding Shares as of such date. The
Reporting Persons collectively have the power to vote, direct the vote, dispose
of or direct the disposition of all the Shares of which they may be deemed to be
the beneficial owners.
(c) The trading date, number of Shares purchased and price per Share (excluding
commissions, if any) for all transactions by the Reporting Persons for the
60-day period preceding November 2, 1998 through the date hereof are set forth
in Exhibit B hereto.
(d) Other than the Reporting Persons and the Accounts, with respect to the
Shares beneficially owned by them, no other person is known to have the right to
receive or the power to direct the receipt of dividends from, or the proceeds of
sale of, such Shares.
(e) Not applicable.
Item 6. Contracts, Arrangements, Understandings or Relationships with Respect to
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Securities of the Company
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No change.
-7-
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Item 7. Material to be Filed as Exhibits
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The following exhibits are filed hereto:
Exhibit A: An agreement relating to the filing of a joint statement as
required by Rule 13d-1(k) under the Securities Exchange Act
of 1934
Exhibit B: A description of the transactions in the Shares that were
effected by the Reporting Persons during the 60-day period
preceding November 2, 1998 through the date hereof
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<PAGE>
SIGNATURE
After reasonable inquiry and to the best of our knowledge and
belief, the undersigned certify that the information set forth in this statement
is true, complete and correct.
Dated: November 12, 1998
BASSWOOD PARTNERS, L.P.
By: Basswood Management, Inc., its General Partner
By: /s/ Matthew Lindenbaum
-----------------------
Name: Matthew Lindenbaum
Title: President
/s/ Matthew Lindenbaum
---------------------------------
Matthew Lindenbaum
/s/ Bennett Lindenbaum
---------------------------------
Bennett Lindenbaum
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EXHIBIT INDEX
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EXHIBIT TITLE
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Exhibit A: An agreement relating to the filing of a joint statement as
required by Rule 13d-1(k) under the Securities Exchange Act
of 1934
Exhibit B: A description of the transactions in the Shares that were
effected by the Reporting Persons during the 60-day period
preceding November 2, 1998 through the date hereof
<PAGE>
EXHIBIT A
AGREEMENT
The undersigned agree that this Schedule 13D relating to the Common Stock
of Foothill Independent Bancorp shall be filed on behalf of each of the
undersigned.
Dated: November 12, 1998
BASSWOOD PARTNERS, L.P.
By: Basswood Management, Inc., its General Partner
By: /s/ Matthew Lindenbaum
-----------------------
Name: Matthew Lindenbaum
Title: President
/s/ Matthew Lindenbaum
---------------------------------
Matthew Lindenbaum
/s/ Bennett Lindenbaum
---------------------------------
Bennett Lindenbaum
<PAGE>
EXHIBIT B
TRANSACTIONS IN SHARES DURING THE PERIOD COMMENCING FROM THE 60-DAY PERIOD
PRECEDING NOVEMBER 2, 1998 THROUGH THE DATE HEREOF
Name of Person Causing Transactions: Jet I, L.P.
# of Shares Transaction place
Date Purchased Price per Share and manner
- ------------ ------------ --------------- ------------------
11-02-98 4,300 $ 11.375 NASDAQ National
Market (open market
purchase)
