Shieman Out as Head of the Matsco Companies
Matthew D. Shieman is out as president of the Matsco Companies, originally founded by his family, and under his leadership, the company grew in the Dental field particularly with sponsorship of the American Dental Society.
Shieman The company was sold to Greater Bay Bank on November 3, 2000 for $6.5 million in cash. In their SEC statement, the bank commented "We may also be required to pay future contingent cash payment of up to $6.0 million based on the performance of Matsco subsequent to the acquisition. The excess of purchase price over the estimated fair values of the net assets acquired, totaling $15.9 million, was record as goodwill, and through December 31, 2001 amortized on the straight-line method over 20 years. Goodwill is evaluated annually for possible impairment under the provision of SFAS No. 142." Keith Wilton, Exec. VP, Greater Bay Bank, with his office in Walnut Creek, California, is heading a committee of Matsco employees who are running the Matsco Companies in Emeryville, California. Wilton took the job from Dave Hood, who retired. Wilton has other bank responsibilities, such as the SBA program, a bank spokesman told Leasing News. Shieman has “... joined Diversity as a board member and representative on the West Coast. Matt can be contacted at mshieman@divcapital.com, “from a press release from Diversity Capital, a “boutique investment banking group specializing in providing financial services to the commercial finance and equipment leasing industries. stated yesterday.(www.divicapital.com)” In the press release, according to David D'Antoinio, Managing Director: “Matt's location on the West Coast will assist Diversity in delivering service to our clients and prospects in a quicker more efficient fashion. In addition, Matt brings a diverse background and increased experience to our Company.” The press release states: "Diversity Capital LLC is a seven year old advisory firm located in Cinnaminson, NJ that provides debt origination advisory, Commercial Paper placement services, M& A advice, expert opinion services and other related products to the Leasing and Commerce Finance lending industries. Please contact David D'Antonio at ddantonio@divcapital.com or 856.303.8100" According to the company web site, D'Antonio “ Prior to forming Diversity, Dave was a Director at First Union Capital Markets and a Senior Vice President at CoreStates Bank N.A. where he was responsible for the management and development of the Lease Finance Group. This group was the leading national lender to leasing companies with a variety of products including asset securitization, credit facilities, subordinated debt and other treasury management tools. Dave served on the Equipment Leasing Association (ELA) Board from 1998-2001 and has been involved in a number of finance industry groups at the most senior levels.” Matthew D. Shieman is listed as the vice-chairman of ELA Committees: DIVERSITY CAPITAL LLC Leasing News reported October 2,2002, that the parent of the Matsco Companies, Greater Bay Bank, had run into financial difficulties with the federal regulators: "Greater Bay Banks stock has been hurt by continued concerns about the real estate portfolio. Admittedly it's pretty shocking because **all** of the numbers are just fine. Greater Bay has a HUGE loan loss reserve compared to their peers, but the dive in the stock is mind-boggling, " a highly reliable source told Leasing News. "As far as I knew, yes the Bank was taking some losses at MATSCO and was seeing some deterioration in their portfolio. But compared to the entire Bank, MATSCO's losses, in my opinion, would not be so much cause for concern to cause the stock price to go down like it has. MATSCO simply isn't a big enough part to be the sole reason for the stock price hit." While the bank settled its problems with regulators, the Matsco Company was moved from the Cupertino Bank location and put under tighter scrutiny due to the increase regulatory observations of operations. There were questions about an $8 million loss in ATM leases and problems with business from brokers. An outgrowth from the company started by Fred Shieman, who died tragically and left the business for his son to continue, Matt, who grew it into a major entity, then running into the changing securitization market, sold to Greater Bay Bank, a conglomeration of San Francisco Bay Area banks, originally in San Mateo and Santa Clara County, now growing into other counties. Rumors regarding real estate transactions, SBA transactions, and the rapid growth have affected the sale of stock, plus reportedly increased outside bank audit activity. It is alleged this has also affected the Matsco Companies ability to seek low rate funds and reportedly has affected the operation. Subsequent inside information was denied about computer operating problems, problem loans, and the move out of direct loans into brokering them to others. A good part of the business was from the purchase of practices, new practices, including leasing on new equipment and working capital for the dentist. Ex-employees began telling Leasing News about "down sizing," "tight credit criteria," and "shifts in management." Then a key a key player at Matsco “retired,” Hy Bren. Then the company divested itself from the broker business, closing down the operation to concentrate CPA practices, dental, nursing homes, and veterinarians. “What I can say is that the rumor statement is far from being accurate and that the financial performance of the Company this year has never been better in its 20 year history. “Hope all is well with you and I will send response on Monday.” Matt (Shieman) The statement never came. In a July, 2003 Greater Bay Bank Telephone Conference, the president and CEO of the bank said,"...didn't sell any Matsco loans this last quarter due to operational problems, but plan to soon in the 1 ½ to 2 million dollar range." Leasing News has tried to reach Mr. Matsco, Keith Wilton, bank president/CEO Byron A. Scordelis, chief financial officer, exec. vp and CFO James S. Westfall, but telephone calls or e-mails were not returned. Leasing News was told other information from a very highly reliable source, but would like to confirm the information before reporting any further news. |
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