Malvern Bancorp in Paoli, Pa., is facing outside pressure to remove some of its directors.
Lawrence Seidman, an activist investor in New Jersey, wrote in a regulatory filing that he plans to withhold support for all three of the $727 million-asset company's directors who are up for reelection this year. Seidman, who controls about 5.4% of Malvern's stock, said he wants the company to eliminate staggered terms so all directors are elected annually.
Seidman, like several other large investors, said he is supportive of Anthony Weagley, who became Malvern's president and chief executive in 2014. Seidman was a director at Center Bancorp, where Weagley previously served as president and CEO before the company merged with ConnectOne Bancorp.
Weagley "is a highly competent banking executive who will continue to create value for the issuer's shareholders," the filing said.
Seidman is following an approach PL Capital took with Malvern last year. The Naperville, Ill., company voted against Malvern's directors at the 2015 annual meeting, even though it supported Weagley.
Richard Lashley, a PL Capital principal, wrote in a January 2015 letter to George Steinmetz, Malvern's chairman, that the company's longstanding directors "should take their share of responsibility for the issues Malvern has faced under their watch."
Malvern's annual meeting is set for Feb. 17.