William Penn Bancorp in Levittown, Pa., is facing pressure from an activist to conduct a mutual conversion.
Management at the $313 million-asset William Penn should explore either making a second-step conversion or launching a yearly 10% stock buyback plan, the New York investor Joseph Stilwell said in an April 12 regulatory filing.
"We believe the Issuer has made progress on shareholder-friendly capital allocation," Stilwell said in the filing. However, a stock buyback or a second-step conversion would "maximize shareholder value," he said.
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Kearny Financial completed its IPO less than a year ago and already it has found itself in the crosshairs of Lawrence Seidman. The well-known activist is pushing for the resignation of several board members he says are overcompensated and is urging shareholders to vote against a proposal on director pay this fall.
April 8 -
The New York State Appellate Division of the Supreme Court ruled on Tuesday that the activist investor Joseph Stilwell cannot force NorthEast Community Bancorp in White Plains, N.Y., to convert to a fully stock-owned bank.
March 23 -
Activist investors are turning their sights back toward banks after going easier on them than on other industries in recent years. Look for the next bank M&A wave to be fueled by aggressive hedge funds as they push for board seats and ultimately sales of financial institutions.
January 31
Funds controlled by Stilwell own about 4% of William Penn. Stilwell has owned shares in William Penn since May 2008.
William Penn is majority-owned by a mutual holding company that holds about 75% of the company. It completed a partial conversion from a mutual to a publicly traded company in April 2008.
William Penn Bank was established in 1870. Its three branches are in Levittown, Morrisville and Richboro, Pa.