Prudential Bancorp, Stilwell settle litigation

By Lisa Kerner

Charlotte, N.C., Nov. 7 - Prudential Bancorp, Inc. of Pennsylvania and Stilwell Value Partners I, LP reached an agreement to settle all outstanding litigation brought by Stilwell against Prudential Bancorp and some of its affiliates.

Under the terms of the companies' settlement agreement, the Stilwell Group agreed to vote in favor of Prudential Bancorp's adoption of a stock option plan as well as a management recognition and retention plan.

Stilwell Group, with a 9.7% interest, will not propose to seek to effect a merger or sale of Prudential Bancorp.

Prudential Bancorp will undertake a reorganization from the current mutual holding company form to the stock holding company form of organization no later than the company's annual meeting of shareholders for 2013.

In addition, Prudential Bancorp agreed to repurchase at least 1,357,116 additional shares of the company's common stock by Sept. 30, 2011.

If the repurchase program is not completed by Sept. 30, 2011, Prudential Bancorp will either adopt a plan of conversion to effect a second-step conversion or appoint a qualified Stilwell-nominated representative to its board.

Prudential Bancorp is a Philadelphia-based holding company for Prudential Savings Bank, which operates six full-service branches in the Philadelphia area.

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