Activist Stilwell Retools Financial Holdings

Community banking

Activists Staying Busy in Advance of Proxy Season

PL Capital recently put Malvern Bancorp and Orrstown Financial on notice that it is watching management's moves, while First Financial Northwest continues to absorb litigation costs months after an investor contested the results of an annual meeting.

By Andy Peters

October 24
Consumer banking

Malvern, Hamilton Finish Second-Step Conversions

Two East Coast banks have shed their mutual holding company ownership.

By Brian Browdie

October 12
Community banking

HomeTrust in North Carolina Enacts Tax Preservation Plan

HomeTrust Bancshares in Asheville, N.C., has adopted a so-called "tax preservation plan," which is designed to protect a company's deferred tax assets during a lengthy period of operating losses.

By Rachel Witkowski

September 26
Community banking

First Financial Northwest in Washington Blames Activist for 3Q Loss

First Financial Northwest in Renton, Wash., a $973 million-asset company, lost $791,000 in the third quarter, compared to net income of $1.4 million in the second quarter and profit of $623,000 a year earlier.

By Paul Davis

October 19

Stilwell Group has given management teams of four thrifts cause to worry while removing pressure from 10 other financial companies.

The New York investment group, which has a history of pressuring management teams, disclosed in a regulatory filing Monday that it had acquired a 9.2% stake in Hamilton Bancorp (HBK). The firm said in its filing that it would seek board representation at the Baltimore thrift if management ignores its suggestions to "maximize shareholder value."

The investment firm, led by Joseph Stilwell, also disclosed new stakes in HomeTrust Bancshares (HTBI) in Asheville, N.C.; HopFed Bancorp (HFBC) in Hopkinsville, Ky.; and LSB Financial (LSBI) in Lafayette, Ind.

All four of the institutions converted to stock-owned companies from mutual thrifts. Hamilton converted on Oct. 10, raising $37 million, while HomeTrust converted in July with a $208 million stock offering. HopFed, and LSB converted in the 1990s.

Stilwell sold all of his holdings in 10 different institutions, including Beneficial Mutual Bancorp (BNCL) in Philadelphia; Capitol Federal Financial (CFFN) in Topeka, Kan.; and Meridian Interstate Bancorp (EBSB) in East Boston, Mass.

Stilwell remains involved in litigation against First Financial Northwest (FFNW) in Renton, Wash. The $973 million-asset thrift recently blamed a lawsuit filed by the firm for part of its third-quarter loss. Stilwell is seeking to invalidate the results of First Financial's board elections, in which Stilwell's nominee lost.

Stilwell could not be reached for additional comment.

Andy Peters

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