Polonia Bancorp (PBCP) in Huntingdon Valley, Pa., has postponed its stock sale and conversion to a stock company after a regulatory exam revealed compliance problems.
The company said that examiners identified "certain policy and procedural deficiencies" in connection with its anti-money laundering and Bank Secrecy Act compliance programs. Polonia said it must incur additional costs to hire personnel and review and change its compliance programs.
The $258 million-asset company said that the Office of the Comptroller of the Currency may issue an enforcement order in connection with the compliance problems.
Just last week, Polonia's mutual holding company and its public shareholders approved a planned second-step conversion. Polonia had said that its conversion and stock sale would close on Oct. 3. Last month, Polonia offered eligible depositors the chance to double their orders in the stock sale, after the company received insufficient orders to complete the offering.
Polonia had pursued the second-step conversion after a dissident shareholder, PL Capital of Naperville, Ill., pressed it to increase liquidity for its stock and take other actions. At May 15, PL Capital was Polonia's second-largest shareholder, after its mutual holding company.
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