The Internet-only American Bank Inc. of Allentown, Pa., is thinking about buying PSB Bancorp Inc. of Philadelphia, which put itself on the block this year.
The $515 million-asset American, already PSB’s largest outside shareholder, said so last week in a Securities and Exchange Commission filing. PSB has $533 million of assets.
American has made no formal offer but has been steadily increasing its stake since May 2004, when it made its initial investment in PSB, buying a 5.7% stake for what it said were investment purposes. It now owns 7.1% of PSB’s outstanding stock and is its fourth-largest shareholder.
In the SEC filing, American said that it might want to be more than just a passive investor. It said it “may contact” PSB “orally or in writing, for the purpose of conveying a possible offer to acquire.”
Anthony DiSandro, PSB’s chief executive officer, said the two companies had not made a deal. He would not say whether they had talked about one or whether he would consider one.
Mark Jaindl, American’s CEO, said Friday that it had to make the filing because its intentions for PSB had changed. He would not comment further.
PSB announced in March that it had hired an investment banking firm to explore strategic options, including a sale.
Its decision may have been prompted by years of legal battles over voided stock options. After buying First Philadelphia Bancorp in 1999, PSB canceled First Philadelphia stock options. In March 2002 six First Philadelphia investors, who remained PSB shareholders, sued to have the options reinstated.
In February an appeals court said that PSB was wrong to cancel the stock options, but in April the court granted PSB a new hearing and dismissed the prior ruling. The shareholders have since filed a new suit.
PSB owns First Penn Bank, which has 12 branches in Philadelphia and its suburbs. American, which is 8 years old, has never bought a bank and has no branches.
