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.
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.