Prudential Bancorp (PBIP) in Philadelphia is planning a second-step conversion.

The $491 million-asset parent of Prudential Savings Bank will shed its mutual status and become fully public, the company said Thursday.

Under the terms of the plan, the bank's mutual holding company will combine with Prudential to form a new holding company, which is expected to sell the mutual company's roughly 75% stake to the public.

Depositors as of the end of 2011 will have first priority to buy the stock, Prudential said. The conversion, which the company expects to complete by the end of this year, requires approval from shareholders, depositors and regulators.

Prudential has seven branches in the Philadelphia area.

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