NEW YORK, March 14, 2016 /PRNewswire/ -- WeissLaw LLP is investigating possible breaches of fiduciary duty and other violations of law by the Board of Directors of 1st Century Bancshares, Inc. ("FCTY" or the "Company") in connection with the proposed acquisition of the Company by Midland Financial Co. ("Midland"). On March 10, 2016, FCTY and Midland jointly announced the proposed acquisition of FCTY, pursuant to which FCTY shareholders will receive $11.22 in cash for each FCTY share they own.
WeissLaw is investigating whether FCTY's Board acted to maximize shareholder value prior to entering into the agreement. Notably, the Company has enjoyed impressive financial results. On March 3, 2016, FCTY reported net income of $869,000 in the fourth quarter of 2015, representing an increase of 36% year-over-year when compared to the $554,000 reported in the same period of the previous year. CEO Alan I. Rothenberg further underscored FCTY's positive financial results when he stated "[W]e've experienced significant growth in both loans and deposits . . . increas[ing] to approximately $598 million, representing growth rates of approximately 35% and 19%, respectively, during the current year. Profitability trends also continue to improve, including a 24% increase in net interest income during the year compared to the prior year and an efficiency ratio of 76%."
Given these facts, WeissLaw is investigating whether FCTY's Board acted in the best interests of FCTY's public shareholders by actively shopping the Company to maximize shareholder value prior to entering into the agreement with Midland. If you own FCTY shares and would like more information about your rights or our investigation, or if you have information to share with us, please contact Joshua Rubin by telephone at (888) 593-4771 or by email at stockinfo@weisslawllp.com.
WeissLaw LLP has litigated hundreds of stockholder class and derivative actions for violations of corporate and fiduciary duties. We have recovered over a billion dollars for defrauded clients and obtained important corporate governance relief in many of these cases. If you have information or would like legal advice concerning possible corporate wrongdoing (including insider trading, waste of corporate assets, accounting fraud, or materially misleading information), consumer fraud (including false advertising, defective products, or other deceptive business practices), or anti-trust violations, please email us at stockinfo@weisslawllp.com or fill out the form on our website, http://www.weisslawllp.com/contact/report_fraud/.
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SOURCE WeissLaw LLP