Stilwell Value Partners VII, L.P.
Stilwell Activist Fund, L.P.
Stilwell Activist Investments, L.P.
Rodney H. Blackwell
On April 12, 2023, Joseph Stilwell and affiliated
entities filed Amendment No. 16 to their Schedule 13D relating to Peoples Financial Corporation, a copy of which is filed herewith.
SECURITY HOLDERS ARE ADVISED TO READ THE PROXY
STATEMENT AND OTHER DOCUMENTS RELATING TO THE SOLICITATION OF PROXIES BY THE GROUP AND OTHER PARTICIPANTS FROM THE SHAREHOLDERS OF PEOPLES
FINANCIAL CORPORATION FOR USE AT ITS 2023 ANNUAL MEETING OF SHAREHOLDERS WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT
INFORMATION, INCLUDING INFORMATION RELATING TO THE PARTICIPANTS IN OUR PROXY SOLICITATION. OUR DEFINITIVE PROXY STATEMENT AND A FORM OF
PROXY HAVE BEEN MAILED TO THE SHAREHOLDERS OF PEOPLES FINANCIAL CORPORATION AND ARE AVAILABLE AT NO CHARGE AT THE SECURITIES AND EXCHANGE
COMMISSION'S WEBSITE AT HTTPS://WWW.SEC.GOV.
(1) Includes 112 shares of Common Stock owned
by The Rodney H. & Ann P. Blackwell Joint Trust U/A 06/15/2016 (the “Trust”). Because he is the joint owner of the Trust
with Ann P. Blackwell, Rodney H. Blackwell has the power to direct the affairs of the Trust, including the voting and disposition of shares
of Common Stock held in the name of the Trust.
Item 3. Source and Amount of Funds or Other
Consideration
Since we last reported purchases
and sales of Common Stock (see the Fifteenth Amendment), Rodney H. Blackwell has not expended any monies to acquire shares of Common Stock.
Such funds, from time to time, may be provided in part by margin account loans from subsidiaries of Fidelity extended in the ordinary
course of business.
Since we last reported purchases
and sales of Common Stock (see the Fifteenth Amendment), the Trust has not expended any monies to acquire shares of Common Stock. Such
funds, from time to time, may be provided in part by margin account loans from subsidiaries of Charles Schwab extended in the ordinary
course of business.
Since we last reported purchases
and sales of Common Stock (see the Fifteenth Amendment), Stilwell Value Partners VII has not expended any monies to acquire shares of
Common Stock. Such funds were provided from Stilwell Value Partners VII’s working capital and, from time to time, may be provided
in part by margin account loans from subsidiaries of Interactive Brokers extended in the ordinary course of business.
Since we last reported purchases
and sales of Common Stock (see the Fifteenth Amendment), Stilwell Activist Fund has expended $30,000.00 to acquire 2,500 shares of Common
Stock. Such funds were provided from Stilwell Activist Fund’s working capital and, from time to time, may be provided in part by
margin account loans from subsidiaries of Morgan Stanley extended in the ordinary course of business.
Since we last reported purchases
and sales of Common Stock (see the Fifteenth Amendment), Stilwell Activist Investments has expended a total of $70,262.50 to acquire 5,500
shares of Common Stock. Such funds were provided from Stilwell Activist Investment’s working capital and, from time to time, may
be provided in part by margin account loans from subsidiaries of Morgan Stanley extended in the ordinary course of business.
All purchases of shares of
Common Stock made by the Stilwell Group using funds borrowed from Interactive Brokers or Morgan Stanley, if any, were made in margin transactions
on their usual terms and conditions. All or part of the shares of Common Stock owned by members of the Stilwell Group may from time to
time be pledged with one or more banking institutions or brokerage firms as collateral for loans made by such entities to members of the
Stilwell Group. Such loans generally bear interest at a rate based on the broker’s call rate from time to time in effect. Such indebtedness,
if any, may be refinanced with other banks or broker-dealers.
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SCHEDULE 13D |
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Item 4. Purpose of Transaction
We are filing this Sixteenth Amendment to announce
that we have mailed a letter to the Issuer’s shareholders. A copy of this letter is attached as Exhibit 20 to this Sixteenth Amendment
and is also available at http://www.okapivote.com/PFBX.
We believe management and
the directors have ill served the Issuer’s shareholders, and the Issuer should explore all possibilities to maximize shareholder
value.
Our nominees for election
as directors at the Issuer’s 2021 and 2022 annual meetings were not elected. Subsequent to the 2022 annual meeting, the Board of
Governors of the Federal Reserve notified us that it would not object to our request to buy additional shares of the Issuer up to 14.9%.
On May 31, 2022, pursuant to Mississippi law, we asked to examine the Issuer’s books and records related to, among other things,
reported losses associated with the Issuer’s securities portfolio and the employees(s) responsible for managing the securities portfolio.
When the Issuer refused to permit the inspection of its books and records, we filed, on July 22, 2022, a complaint in the Chancery Court
of Harrison County, Mississippi to compel the production of those books and records. On January 25, 2023, we announced our nominee for
election as a director at PFBX’s 2023 annual meeting.
Our purpose in acquiring shares
of Common Stock of the Issuer is to profit from the appreciation in the market price of the shares of Common Stock through asserting shareholder
rights. We do not believe the value of the Issuer's assets is adequately reflected in the current market price of the Issuer's Common
Stock.
THIS SIXTEENTH AMENDMENT
MAY BE DEEMED TO BE SOLICITATION MATERIAL IN RESPECT OF THE SOLICITATION OF PROXIES BY THE 13D GROUP FROM THE ISSUER'S SHAREHOLDERS IN
CONNECTION WITH THE ISSUER'S 2023 ANNUAL MEETING. SECURITY HOLDERS ARE ADVISED TO READ THE PROXY STATEMENT AND OTHER DOCUMENTS RELATING
TO THE SOLICITATION BY THE 13D GROUP AND OTHER PARTICIPANTS OF PROXIES FROM THE ISSUER'S SHAREHOLDERS FOR USE AT THE ISSUER'S 2023 ANNUAL
MEETING OF SHAREHOLDERS WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION, INCLUDING INFORMATION RELATING TO
THE PARTICIPANTS IN OUR PROXY SOLICITATION. OUR DEFINITIVE PROXY STATEMENT AND A FORM OF PROXY HAVE BEEN MAILED TO SHAREHOLDERS OF THE
ISSUER AND ARE ALSO AVAILABLE AT NO CHARGE AT THE SECURITIES AND EXCHANGE COMMISSION'S WEBSITE AT HTTPS://WWW.SEC.GOV.
Members of the 13D Group may
seek to make additional purchases or sales of shares of Common Stock. Except as described in this filing, no member of the 13D Group has
any plans or proposals which relate to, or could result in, any of the matters referred to in paragraphs (a) through (j), inclusive, of
Item 4 of Schedule 13D. Members of the 13D Group may, at any time and from time to time, review or reconsider their positions and formulate
plans or proposals with respect thereto.
Since 2000, members or affiliates
of the Stilwell Group have taken an ‘activist position’ in 71 other publicly-traded companies. Currently, members or affiliates
of the Stilwell Group file Schedule 13Ds to disclose greater than 5% positions only in SEC-reporting companies. For simplicity, these
affiliates are referred to below as the “Stilwell Group,” “we,” “us,” or “our.” In each
instance, our purpose has been to profit from the appreciation in the market price of the shares we held by asserting shareholder rights.
In addition, we believed that the values of the companies’ assets were not adequately reflected in the market prices of their shares.
Our actions are described below. We have categorized the descriptions of our actions with regard to the issuers based upon certain outcomes
(whether or not, directly or indirectly, such outcomes resulted from the actions of the Stilwell Group). Within categories I through III
below, the descriptions are listed in chronological order based upon the completion date of the investment; within categories IV through
VII below, the descriptions are listed in chronological order based upon the respective filing dates of the originally-filed Schedule
13Ds, or, in limited instances, the acquisition date of the 5% position of a non-reporting company.
CUSIP No. 71103B102 |
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I.
Security of Pennsylvania
Financial Corp. (“SPN”) - We filed our original Schedule 13D to report our position on May 1, 2000. We scheduled a meeting
with senior management to discuss ways to maximize the value of SPN’s assets. On June 2, 2000, prior to the scheduled meeting, SPN
and Northeast Pennsylvania Financial Corp. announced SPN’s acquisition.
Cameron Financial Corporation
(“Cameron”) - We filed our original Schedule 13D to report our position on July 7, 2000. We exercised our shareholder
rights by, among other things, requesting that Cameron management hire an investment banker, demanding Cameron’s list of shareholders,
meeting with Cameron’s management, demanding that Cameron invite our representatives to join the board, writing to other shareholders
to express our dismay with management’s inability to maximize shareholder value and publishing that letter in the local press. On
October 6, 2000, Cameron announced its sale to Dickinson Financial Corp.
Community Financial Corp.
(“CFIC”) - We filed our original Schedule 13D to report our position on January 4, 2001, following CFIC’s announcement
of the sale of two of its four subsidiary banks and its intention to sell one or more of its remaining subsidiaries. We reported that
we acquired CFIC stock for investment purposes. On January 25, 2001, CFIC announced the sale of one of its remaining subsidiaries. We
then announced our intention to run an alternate slate of directors at the 2001 annual meeting if CFIC did not sell the remaining subsidiary
by then. On March 27, 2001, we wrote to CFIC confirming that CFIC’s management had agreed to meet with one of our proposed nominees
to the board. On March 30, 2001, before our meeting took place, CFIC announced its merger with First Financial Corporation.
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Montgomery Financial Corporation
(“Montgomery”) - We filed our original Schedule 13D to report our position on February 23, 2001. On April 20, 2001, we
met with Montgomery’s management and suggested that they maximize shareholder value by selling the institution. We also informed
management that we would run an alternate slate of directors at the 2001 annual meeting unless Montgomery was sold. Eleven days after
we filed our Schedule 13D, however, Montgomery’s board amended its bylaws to limit the pool of potential nominees to local persons
with a banking relation and to shorten the deadline to nominate an alternate slate. We located qualified nominees under the restrictive
bylaw provisions and noticed our slate within the deadline. On June 5, 2001, Montgomery announced that it had hired an investment banker
to explore a sale. On July 24, 2001, Montgomery announced its merger with Union Community Bancorp.
Community Bancshares, Inc.
(“COMB”) - We filed our original Schedule 13D reporting our position on March 29, 2004. We disclosed that we intended
to meet with COMB’s management and evaluate management’s progress in resolving its regulatory issues, lawsuits, problem loans,
and non-performing assets, and that we would likely support management if it effectively addressed COMB’s challenges. On November
21, 2005, we amended our Schedule 13D and stated that although we believed that COMB’s management had made progress, COMB’s
return on equity would likely remain below average for the foreseeable future, and it should therefore be sold. We also stated that if
COMB did not announce a sale before our deadline to solicit proxies for the next annual meeting, we would solicit proxies to elect our
own slate. On January 6, 2006, we disclosed the names of our three board nominees. On May 1, 2006, COMB announced its sale to The Banc
Corporation.
Jefferson Bancshares, Inc.
(“JFBI”) - We filed our original Schedule 13D reporting our position on April 8, 2013. Our shareholder proposal requesting
the board seek outside assistance to maximize shareholder value through actions such as a sale or merger was defeated at JFBI’s
2013 annual meeting. We met with management and the board of directors and told them that we would seek board representation at JFBI’s
2014 annual meeting if JFBI did not announce its sale. JFBI’s sale to HomeTrust Bancshares, Inc. was announced on January 23, 2014.
FedFirst Financial Corporation
(“FFCO”) - We filed our original Schedule 13D reporting our position on September 24, 2010. After several meetings with
management, FFCO completed a meaningful number of share repurchases, and on April 14, 2014, FFCO announced its sale to CB Financial Services,
Inc.
SP Bancorp, Inc. (“SPBC”)
- We filed our original Schedule 13D reporting our position on February 28, 2011. On August 9, 2013, we met with management and the chairman
to assess the best way to maximize shareholder value. SPBC completed a meaningful number of share repurchases, and on May 5, 2014, SPBC
announced its sale to Green Bancorp Inc.
TF Financial Corporation
(“THRD”) - We filed our original Schedule 13D reporting our position on November 29, 2012. We met with the CEO and the
chairman, encouraging them to focus only on accretive acquisitions and to repurchase shares up to book value. They subsequently did both.
On June 4, 2014, THRD announced its sale to National Penn Bancshares, Inc.
Fairmount Bancorp, Inc.
(“FMTB”) - We filed our original Schedule 13D reporting our position on September 21, 2012. On February 25, 2014, we reported
our intention to seek board representation at FMTB’s 2015 annual meeting if FMTB did not announce its sale. However, due to the
appointment of our representative to another board in the local area, we were unable to nominate our representative at the 2015 election
of FMTB directors. We reiterated our intent to seek board representation at the earliest possible time if FMTB was not sold. FMTB’s
sale was announced on April 16, 2015.
Harvard Illinois Bancorp,
Inc. (“HARI”) - We filed our original Schedule 13D reporting our position on April 1, 2011. In 2012, we nominated a director
for election at HARI’s 2012 annual meeting and communicated our belief that HARI should merge with a stronger community bank. Our
nominee was not elected, so we nominated a director at HARI’s 2013 annual meeting and stated our position that HARI should be sold.
We communicated to stockholders our intent to run a nominee every year until elected, and we nominated a director at HARI’s 2014
annual meeting. Our nominee was not elected, so in April 2015, we began soliciting stockholder votes for our nominee for HARI’s
2015 annual meeting. On May 21, 2015, HARI announced the sale of its subsidiary bank to State Bank in Wonder Lake, IL. We subsequently
withdrew our solicitation of proxies for the election of our nominee at HARI’s 2015 annual meeting. The sale of HARI’s subsidiary
bank was completed on August 1, 2016. On August 10, 2016, we entered into a settlement agreement with HARI whereby two legacy board members
stepped down, and we agreed not to seek board representation through 2017. HARI implemented a plan of voluntary dissolution.
Eureka Financial Corp.
(“EKFC”) - We filed our original Schedule 13D reporting our position on March 28, 2011. We encouraged EKFC to pay special
dividends to shareholders and repurchase shares. Management and the board did both, and on September 3, 2015, EKFC announced its sale
to NexTier, Inc.
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United-American Savings
Bank (“UASB”) - We filed our original Schedule 13D with the Federal Deposit Insurance Corporation reporting our position
on May 20, 2013. We believe management and the board acted in good faith to position UASB to maximize shareholder value. After we encouraged
them to sell, UASB announced its sale to Emclaire Financial Corp on December 30, 2015.
Polonia Bancorp, Inc. (“PBCP”)
- We filed our original Schedule 13D reporting our position on November 23, 2012. After several conversations with the Chairman and CEO,
we publicly called for PBCP’s sale. On June 2, 2016, PBCP’s sale to Prudential Bancorp, Inc. was announced.
Georgetown Bancorp, Inc.
(“GTWN”) - We filed our original Schedule 13D reporting our position on July 23, 2012. We encouraged GTWN to maximize
shareholder value through share repurchases, and we supported management and the board’s consistent efforts to do so. On October
6, 2016, GTWN announced its sale to Salem Five Bancorp.
Wolverine Bancorp, Inc.
(“WBKC”) - We filed our original Schedule 13D reporting our position on February 7, 2011. We encouraged WBKC to maximize
shareholder value through share repurchases and payments of special dividends, and we supported management and the board’s consistent
efforts to do so. On June 14, 2017, WBKC’s sale to Horizon Bancorp was announced.
First Federal of Northern
Michigan Bancorp, Inc. (“FFNM”) - We filed our original Schedule 13D reporting our position on March 10, 2016. We believed
FFNM was positioned to repurchase shares, and we urged management and the board to do so. On January 16, 2018, FFNM’s sale to Mackinac
Financial Corporation was announced. FFNM deregistered its shares of common stock effective in 2016.
Jacksonville Bancorp, Inc.
(“JXSB”) - We filed our original Schedule 13D reporting our position on July 5, 2011. We supported JXSB’s consistent
efforts to maximize shareholder value through share repurchases and payments of special dividends. On January 18, 2018, JXSB’s sale
to CNB Bank Shares, Inc. was announced.
Anchor Bancorp (“ANCB”)
- We filed our original Schedule 13D reporting our position on May 7, 2012. We previously urged ANCB to maximize shareholder value by
increasing share repurchases or selling the bank. We called for ANCB’s sale to the highest bidder on July 7, 2016. On August 29,
2016, we agreed not to seek board representation at the 2016 annual meeting in consideration of ANCB appointing Gordon Stephenson as a
director. We believe the board acted in good faith to maximize shareholder value through ANCB’s announced sale to Washington Federal,
Inc. on April 11, 2017. That acquisition was delayed due to regulatory issues at Washington Federal, Inc. On July 17, 2018, ANCB’s
sale to FS Bancorp, Inc. at a higher price was announced.
Hamilton Bancorp, Inc.
(“HBK”) - We filed our original Schedule 13D reporting our position on October 22, 2012. Having met with management over
the years, we believe management and the board acted in good faith to maximize shareholder value through HBK’s announced sale to
Orrstown Financial Services, Inc. on October 23, 2018.
Ben Franklin Financial,
Inc. (“BFFI”) - We filed our original Schedule 13D reporting our position on February
9, 2015. We urged management and the board to repurchase shares as soon as BFFI was permitted. We subsequently believed BFFI should be
sold, and on December 3, 2018, announced our intent to seek board representation at BFFI’s 2019 annual meeting. On February 22,
2019, we served our notice of intent to nominate Ralph Sesso for election as a director on BFFI’s board. On July 16, 2019, BFFI’s
sale to Corporate America Family Credit Union was announced. BFFI deregistered its shares of common stock effective in 2018.
Alcentra Capital Corp (“ABDC”)
- We filed our original Schedule 13D reporting our position on December 28, 2017. We informed management at a meeting on January 5, 2018,
and reiterated several times throughout the year, that if ABDC did not repurchase 10% of its shares in 2018, we would aggressively seek
board representation. They did not do so. On January 25, 2019, we announced our nominees and alternate nominee for ABDC’s 2019 election
of directors. On August 13, 2019, ABDC’s sale to Crescent Capital BDC, Inc. was announced.
First Advantage Bancorp
(“FABK”) - We filed our original Schedule 13D reporting our position on March 20,
2017. We believe management and the board acted in good faith to maximize shareholder value over the long term. On October 23, 2019, FABK’s
sale to Reliant Bancorp, Inc. was announced. FABK deregistered its shares of common stock effective in 2013.
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Central Federal Bancshares,
Inc. (“CFDB”) - We filed our original Schedule 13D reporting our position on January 25, 2016. We urged management and
the board of CFDB to repurchase shares as soon as CFDB was permitted. On May 21, 2019, we met with management, the board and its attorney
at CFDB’s annual meeting, and followed up with a letter to the board calling for CFDB’s sale if it did not repurchase a meaningful
number of shares. On January 17, 2020, CFDB’s sale to Southern Missouri Bancorp, Inc. was
announced. CFDB deregistered its shares of common stock effective in 2019.
Carroll Bancorp, Inc. (“CROL”)
- We filed our original Schedule 13D reporting our position on March 17, 2014. On March 6, 2020, CROL’s sale to Farmers and Merchants
Bancshares, Inc. was announced. CROL deregistered its shares of common stock effective in 2017.
Brunswick Bancorp (“BRBW”) –
We met with the President, CFO and Chairman of the Board to express our views on BRBW’s capital allocation, and they indicated that
they would rather grow than repurchase shares below book value. Therefore, in the absence of material share repurchases, we nominated
a director for election at BRBW’s 2021 annual meeting. Our nominee was not elected. On December 20, 2022, BRBW’s sale to Mid
Penn Bancorp, Inc. was announced. BRBW deregistered its shares of common stock effective in 2007.
II.
Oregon Trail Financial
Corp. (“OTFC”) - We filed our original Schedule 13D reporting our position on December 15, 2000. In January 2001, we met
with the management of OTFC to discuss our concerns that management was not maximizing shareholder value, and we proposed that OTFC voluntarily
place our representative on the board. OTFC rejected our proposal, and we announced our intention to solicit proxies to elect a board
nominee. We demanded OTFC’s shareholder list, but OTFC refused to give it to us. We sued OTFC in Baker County, Oregon, and the court
ruled in our favor and sanctioned OTFC. We also sued two OTFC directors alleging that one had violated OTFC’s residency requirement
and that the other had committed perjury. Both suits were dismissed pre-trial but we filed an appeal in one suit and were permitted to
re-file the other suit in state court. On August 16, 2001, we started soliciting proxies to elect Kevin D. Padrick, Esq. to the board.
We argued in our proxy materials that OTFC should have repurchased its shares at prices below book value. OTFC announced the hiring of
an investment banker. Then, the day after the 9/11 attacks, OTFC sued us in Portland, Oregon and moved to invalidate our proxies; the
court denied the motion and the election proceeded.
On October 12, 2001, OTFC’s
shareholders elected our candidate by a two-to-one margin. In the five months after the filing of our first proxy statement (i.e., from
August 1 through December 31, 2001), OTFC repurchased approximately 15% of its shares. On March 12, 2002, we entered into a standstill
agreement with OTFC. OTFC agreed to: (a) achieve annual targets for return on equity, (b) reduce its current capital ratio, (c) obtain
advice from an investment banker regarding annual 10% stock repurchases, (d) re-elect our director to the board, (e) reimburse a portion
of our expenses, and (f) withdraw its lawsuit. On February 26, 2003, OTFC and FirstBank NW Corp. announced their merger, and the merger
was completed on October 31, 2003.
HCB Bancshares, Inc. (“HCBB”)
- We filed our original Schedule 13D reporting our position on June 14, 2001. On September 4, 2001, we reported that we had entered into
a standstill agreement with HCBB, under which HCBB agreed to: (a) add a director selected by us, (b) consider conducting a Dutch tender
auction, (c) institute annual financial targets, and (d) retain an investment banker to explore alternatives if it did not achieve its
financial targets. On October 22, 2001, our nominee, John G. Rich, Esq., was named to the board. On January 31, 2002, HCBB announced a
modified Dutch tender auction to repurchase 20% of its shares. Although HCBB’s outstanding share count decreased by 33% between
the filing of our original Schedule 13D and August 2003, HCBB did not achieve the financial target. On August 12, 2003, HCBB announced
it had hired an investment banker to assist in exploring alternatives for maximizing shareholder value, including a sale. On January 14,
2004, HCBB announced its sale to Rock Bancshares, Inc.
SCPIE Holdings Inc. (“SKP”)
- We filed our original Schedule 13D reporting our position on January 19, 2006. We announced we would run our slate of directors at the
2006 annual meeting and demanded SKP’s shareholder list. SKP initially refused to timely produce the list, but did so after we sued
it in Delaware Chancery Court. We engaged in a proxy contest at the 2006 annual meeting, but SKP’s directors were elected. Subsequently
on December 14, 2006, SKP agreed to place Joseph Stilwell on its board. On October 16, 2007, Mr. Stilwell resigned from SKP’s board
after it approved a sale of SKP that Mr. Stilwell believed was an inferior offer. We solicited shareholder proxies in opposition to the
proposed sale; however, the sale was approved, and our shares were converted in a cash deal.
American Physicians Capital,
Inc. (“ACAP”) - We filed our original Schedule 13D reporting our position on November 25, 2002. The Schedule 13D disclosed
that on January 18, 2002, Michigan’s Insurance Department had approved our request to solicit proxies to elect two directors to
ACAP’s board. On January 29, 2002, we noticed our intention to nominate two directors at the 2002 annual meeting. On February 20,
2002, we entered into a three-year standstill agreement with ACAP, providing for ACAP to add our nominee to its board. ACAP also agreed
to consider using a portion of its excess capital to repurchase ACAP’s shares in each of the fiscal years 2002 and 2003 so that
its outstanding share count would decrease by 15% for each of those years. In its 2002 fiscal year, ACAP repurchased 15% of its outstanding
shares; these repurchases were highly accretive to per share book value. On November 6, 2003, ACAP announced a reserve charge and that
it would explore options to maximize shareholder value. It also announced that it would exit the healthcare and workers’ compensation
insurance businesses. ACAP then announced that it had retained Sandler O’Neill & Partners, L.P., to assist the board. On December
2, 2003, ACAP announced the early retirement of its president and CEO. On December 23, 2003, ACAP named R. Kevin Clinton its new president
and CEO.
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On June 24, 2004, ACAP announced
that it had decided that the best means to maximize shareholder value would be to shed non-core businesses and focus on its core business
line in its core markets. We increased our holdings in ACAP, and we announced that we intended to seek additional board representation.
On November 10, 2004, ACAP invited Joseph Stilwell to sit on the board, and we entered into a new standstill agreement. This agreement
was terminated in November 2007, with our representatives remaining on ACAP’s board. On May 8, 2008, our representatives were re-elected
to three-year terms expiring in 2011. Upon the passage of federal healthcare legislation in 2010, ACAP became concerned about the fundamentals
of its business and promptly acted to assess its strategic alternatives. On October 22, 2010, ACAP was acquired by The Doctors Company,
and our shares were converted in a cash deal.
Colonial Financial Services,
Inc. (“COBK”) - We filed our original Schedule 13D reporting our position on August 24, 2011. On December 18, 2013, we
reached an agreement with COBK to have a director of our choice appointed to its board of directors. Our representative, Corissa B. Porcelli
(formerly Corissa J. Briglia), joined COBK’s board of directors on March 25, 2014. On September 10, 2014, COBK announced its sale
to Cape Bancorp, Inc., and the cash/stock deal was completed on April 1, 2015.
Naugatuck Valley Financial
Corporation (“NVSL”) - We filed our original Schedule 13D reporting our position on July 11, 2011. On February 13, 2014,
we reported our intention to seek board representation. On March 12, 2014, we reached an agreement with NVSL for our representative to
join NVSL’s board of directors and for NVSL not to seek approval for stock benefit plans. On June 4, 2015, NVSL announced its sale
to Liberty Bank in Middletown, CT, and the cash deal was completed on January 15, 2016.
Fraternity Community Bancorp,
Inc. (“FRTR”) - We filed our original Schedule 13D reporting our position on April 11, 2011. We reached an agreement with
FRTR, and on November 18, 2014, our representative, Corissa B. Porcelli (formerly Corissa J. Briglia), was appointed to the board of directors.
On October 13, 2015, FRTR’s sale was announced, and the cash deal was completed on May 13, 2016.
Sunshine Financial, Inc.
(“SSNF”) - We filed our original Schedule 13D reporting our position on April 18, 2011. We reached an agreement with SSNF,
and on February 5, 2016, our representative, Corissa B. Porcelli (formerly Corissa J. Briglia), was appointed to the board of directors.
On December 6, 2017, SSNF’s sale to The First Bancshares, Inc. was announced, and the cash/stock deal was completed on April 2,
2018.
Delanco Bancorp, Inc. (“DLNO”)
- We filed our original Schedule 13D reporting our position on October 28, 2013. We reached an agreement with DLNO, and in May 2017, our
representative, Corissa B. Porcelli (formerly Corissa J. Briglia), was appointed to the board of directors. On October 18, 2017, DLNO’s
sale to First Bank was announced, and the stock deal was completed on April 30, 2018.
Poage Bankshares, Inc.
(“PBSK”) - We filed our original Schedule 13D reporting our position on September 23, 2011. We believed PBSK’s board
was not focused on maximizing shareholder value and nominated a director for election at PBSK’s 2014 annual meeting. Our nominee
was not elected, so we nominated a director at PBSK’s 2015 annual meeting. On July 21, 2015, our nominee, Stephen S. Burchett, was
elected as a director with a mandate to maximize shareholder value. Subsequently, the CEO left the company. We publicly called for PBSK’s
sale, and on July 11, 2018, PBSK’s sale to City Holding Company was announced. The stock deal was completed on December 7, 2018.
HopFed Bancorp, Inc. (“HFBC”)
- We filed our original Schedule 13D reporting our position on February 25, 2013. At HFBC’s May 2013 annual meeting, we nominated
a director for the board of directors and strongly opposed HFBC’s agreement to purchase Sumner Bank & Trust. Our nominee won
by a two-to-one margin, and the proposed Sumner deal was subsequently terminated in August 2013.
On May 1, 2017, we sent a
letter to stockholders (filed as Exhibit 13 to the Twelfth Amendment to our Schedule 13D) detailing the extensive real estate holdings
of HFBC’s CEO, John Peck, as well as numerous other conflicts of interest of both Mr. Peck and HFBC’s counsel, George M. (“Greg”)
Carter, of which HFBC board members were apparently unaware. Subsequently, HFBC formed a “Special Litigation Committee” to
investigate. On February 23, 2018, HFBC filed a Form 8-K reporting that although the Special Litigation Committee did not dispute the
facts in the May 1 letter, it declined to recommend HFBC bring a lawsuit or remedial action against John Peck.
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On May 4, 2017, we filed a
complaint in the Delaware Court of Chancery against HFBC, the then current members of the board of directors and one former board member,
asking the Court to declare that HFBC’s prejudicial bylaw was invalid and that the directors breached their fiduciary duties. On
October 4, 2017, HFBC announced it had amended the bylaw thus mooting that case. Subsequently, we filed a motion to recover our attorneys’
fees and expenses, which Vice Chancellor J. Travis Laster granted in its entirety on February 7, 2018, awarding us $610,312. In his ruling
on the motion, the Judge excoriated the conduct of HFBC’s board; the full court transcript is filed as Exhibit 14 to the Fourteenth
Amendment to our Schedule 13D.
On February 23, 2018, we formally
demanded that HFBC’s board of directors take action against HFBC’s attorneys, Edward B. Crosland, Jr., of Jones Walker
LLP and Greg Carter of Carter & Carter Law Firm, for legal malpractice and seek damages in excess of $1 million to HFBC; our demand
letter is attached as Exhibit 15 to the Fifteenth Amendment to our Schedule 13D.
Following our nomination of
Mark D. Alcott in March of 2018 for election to HFBC’s board of directors to replace John Peck, we entered into a Standstill Agreement
with HFBC dated April 10, 2018, whereby Mr. Alcott would be appointed to the HFBC board. The board also adopted revised compensation policies
requiring HFBC to reach at least average annual performance relative to that of its peer group, or its executive officers would not receive
salary raises, bonuses or perquisites.
Mr. Alcott’s appointment
to the HFBC board became effective on April 18, 2018. On January 7, 2019, HFBC’s sale to First Financial Corporation was announced,
and the cash/stock deal was completed on July 27, 2019.
MB Bancorp, Inc. (“MBCQ”)
- We filed our original Schedule 13D reporting our position on January 9, 2015. We urged management
and the board to repurchase shares, and on March 30, 2016, MBCQ announced and subsequently completed its plan to repurchase an initial
10% of its shares outstanding. We urged management and the board to complete the existing 5% share repurchase plan and put MBCQ up for
sale when permitted in January 2018. On February 20, 2018, we reached an agreement with MBCQ, and our representative, Corissa B. Porcelli
(formerly Corissa J. Briglia), was appointed to the board of directors. On September 5, 2019, MBCQ’s sale to BV Financial, Inc.
was announced, and the all-cash deal was completed on February 29, 2020. MBCQ deregistered its shares of common stock effective in 2019.
III.
FPIC Insurance Group, Inc.
(“FPIC”) - We filed our original Schedule 13D reporting our position on June 30, 2003. On August 12, 2003, Florida’s
Insurance Department approved our request to hold more than 5% of FPIC’s shares, to solicit proxies to hold board seats, and to
exercise shareholder rights. On November 10, 2003, FPIC invited our nominee, John G. Rich, Esq., to join the board, and we signed a confidentiality
agreement. On June 7, 2004, we disclosed that because FPIC had taken steps to increase shareholder value, such as multiple share repurchases,
and because its market price increased to reflect fair value in our estimation, we sold our shares in the open market, decreasing our
holdings below 5%. Our nominee was invited to remain on the board.
Roma Financial Corp. (“ROMA”)
- We filed our original Schedule 13D reporting our position on July 27, 2006. Prior to its acquisition by Investors Bancorp, Inc., in
December 2013, nearly 70% of ROMA’s shares were held by a mutual holding company controlled by ROMA’s board. In April 2007,
we engaged in a proxy solicitation at ROMA’s first annual meeting, urging shareholders to withhold their vote from management’s
slate. ROMA did not put their stock benefit plans up for a vote at that meeting. We then met with ROMA management. In the four months
after ROMA became eligible to repurchase its shares, it announced and substantially completed repurchases of 15% of its publicly held
shares, which were accretive to shareholder value. In our judgment, management came to understand the importance of proper capital allocation.
Based on ROMA management’s prompt implementation of shareholder-friendly capital allocation plans, we supported management’s
adoption of stock benefit plans at the 2008 shareholder meeting. In our estimation, ROMA’s market price increased to reflect fair
value, and we sold our shares in the open market.
First Savings Financial
Group, Inc. (“FSFG”) - We filed our original Schedule 13D reporting our position on December 29, 2008. We met with management,
after which FSFG announced a stock repurchase plan and began repurchasing its shares. In December 2009, we reported that our beneficial
ownership in the outstanding FSFG common stock had fallen below 5%.
Prudential Bancorp, Inc.
of Pennsylvania (“PBIP”) - We filed our original Schedule 13D reporting our position on June 20, 2005. Most of PBIP’s
shares were held by the Prudential Mutual Holding Company (the “MHC”), which was controlled by PBIP’s board. The MHC
controlled most corporate decisions requiring a shareholder vote, such as the election of directors. However, regulations promulgated
by the FDIC previously barred the MHC from voting on PBIP’s management stock benefit plans, and PBIP’s IPO prospectus indicated
that the MHC would not vote on the plans. We announced in August 2005 that we would solicit proxies to oppose adoption of the plans as
a referendum to place Joseph Stilwell on PBIP’s board. PBIP decided not to put the plans up for a vote at the 2006 annual meeting.
CUSIP No. 71103B102 |
SCHEDULE 13D |
Page 17 |
In December 2005, we solicited
proxies to withhold votes on the election of directors as a referendum to place Mr. Stilwell on the board. At the 2006 annual meeting,
71% of PBIP’s voting public shares were withheld from voting on management’s nominees.
On April 6, 2006, PBIP announced
that just after we had filed our Schedule 13D, it had secretly solicited a letter from an FDIC staffer (which it concealed from the public)
that the MHC would be allowed to vote in favor of the management stock benefit plans. PBIP also announced a special meeting to vote on
the plans. We alerted the Board of Governors of the Federal Reserve System (the “Fed”) about this announcement, and PBIP was
directed to seek Fed approval before adopting the plans. On April 19, 2006, PBIP postponed the special meeting. The Fed subsequently followed
the FDIC’s position in September 2006. In December 2006, we solicited proxies to withhold votes on the election of PBIP’s
directors at the 2007 annual meeting. At the meeting, 75% of PBIP’s voting public shares were withheld. Also during the annual meeting,
PBIP’s President and Chief Executive Officer was unable to state the meaning of per share return on equity despite Mr. Stilwell’s
holding up a $10,000 check for the charity of the CEO’s choice if he could promptly answer the question. On March 7, 2007, we disclosed
that we were publicizing the results of PBIP’s elections and its directors’ unwillingness to hold a democratic vote on the
stock plans by placing billboard advertisements throughout Philadelphia.
In December 2007, we filed
proxy materials for the solicitation of proxies to withhold votes on the election of PBIP’s directors at the 2008 annual meeting.
At the 2008 annual meeting, an average of 77% of PBIP’s voting public shares withheld their votes. Excluding shares held in PBIP’s
ESOP, an average of 88% of the voting public shares withheld their votes in this election.
On October 4, 2006, we sued
PBIP, the MHC, and the directors of PBIP and the MHC in federal court in Philadelphia seeking an order to prevent the MHC from voting
in favor of the management stock benefit plans. On August 15, 2007, the court dismissed some claims, but sustained our cause of action
against the MHC as majority shareholder of PBIP for breach of fiduciary duties. Discovery proceeded and all the directors were deposed.
Both sides moved for summary judgment, but the court ordered the case to trial, which was scheduled for June 2008. On May 22, 2008, we
voluntarily discontinued the lawsuit after determining that it would be more effective and appropriate to pursue the directors on a personal
basis in a derivative action. On June 11, 2008, we filed a notice to appeal certain portions of the lower court’s August 15, 2007,
order dismissing portions of the lawsuit.
We entered into a settlement
agreement and an expense agreement with PBIP in November 2008 under which we agreed to support PBIP’s management stock benefit plans,
drop our litigation and withdraw our shareholder demand, and generally support management; and in exchange, PBIP agreed, subject to certain
conditions, to repurchase up to three million of its shares (including shares previously purchased), reimburse a portion of our expenses,
and either adopt a second step conversion or add our nominee who meets certain qualification requirements to its board if the repurchases
were not completed by a specified time. On March 5, 2010, we reported that our ownership in PBIP had dropped below 5% as a result of open
market sales and sales of common stock to PBIP.
United Insurance Holdings
Corp. (“UIHC”) - We filed our original Schedule 13D reporting our position on September 29, 2011. On December 17, 2012,
we disclosed that we sold shares in the open market, decreasing our holdings below 5%.
Home Federal Bancorp, Inc.
of Louisiana (“HFBL”) - We filed our original Schedule 13D reporting our position on January 3, 2011. We believe management
and the board acted in good faith and took steps to increase shareholder value, such as multiple share repurchases. In our estimation,
HFBL’s market price increased to reflect fair value; on February 7, 2013, we disclosed that we sold shares in the open market, decreasing
our holdings below 5%.
Standard Financial Corp.
(“STND”) - We filed our original Schedule 13D reporting our position on October 18, 2010. We believe management and the
board acted in good faith and took steps to increase shareholder value, such as multiple share repurchases. In our estimation, STND’s
market price increased to reflect fair value; on March 19, 2013, we disclosed that we sold our shares in the open market, decreasing our
holdings below 5%.
CUSIP No. 71103B102 |
SCHEDULE 13D |
Page 18 |
Alliance Bancorp, Inc.
of Pennsylvania (“ALLB”) - We filed our original Schedule 13D reporting our position on March 12, 2009. When we announced
our reporting position, a majority of ALLB’s shares were held by a mutual holding company controlled by ALLB’s board. However,
on August 11, 2010, ALLB announced its intention to undertake a second step offering, selling all shares to the public. The plan of conversion
and reorganization was approved by depositors at a special meeting held December 29, 2010. We strongly supported ALLB’s action.
Following completion of the conversion of Alliance Bank from the mutual holding company structure to the stock holding company structure,
we increased our stake with the belief that shareholders and ALLB would do well if management focused on profitability. We believe management
and the board acted in good faith and took steps to increase shareholder value, such as multiple share repurchases. In our estimation,
ALLB’s market price increased to reflect fair value; on November 21, 2013, we disclosed that we sold shares in the open market,
decreasing our holdings below 5%.
ASB Bancorp, Inc. (“ASBB”)
- We filed our original Schedule 13D reporting our position on October 24, 2011. On August 23, 2013, we met with management to assess
the best way to maximize shareholder value. We believe management and the board acted in good faith by cleaning up non-performing assets
and repurchasing shares, and ASBB’s market price increased to reflect fair value. On July 18, 2014, we disclosed that we sold our
shares to ASBB.
United Community Bancorp
(“UCBA”) - We filed our original Schedule 13D reporting our position on January 22, 2013. We believe management and the
board acted in good faith and took steps to increase shareholder value, such as multiple share repurchases. In our estimation, UCBA’s
market price increased to reflect fair value; on November 9, 2015, we disclosed that we sold shares to UCBA, decreasing our holdings below
5%.
West End Indiana Bancshares,
Inc. (“WEIN”) - We filed our original Schedule 13D reporting our position on January 19, 2012. We believe management and
the board acted in good faith and took steps to increase shareholder value, such as multiple share repurchases. In our estimation, WEIN’s
market price increased to reflect fair value; on November 12, 2015, we disclosed that we sold our shares in the open market.
William Penn Bancorp,
Inc. (“WMPN”) - We filed our original Schedule 13D reporting our position on May 23, 2008. A majority of
WMPN’s shares were held by a mutual holding company controlled by WMPN’s board. We met with management and the board to
explain our views on proper capital allocation and following the financial crisis, we continued to urge WMPN to take the steps
necessary to maximize shareholder value. On December 3, 2014, WMPN announced and subsequently completed its plan to repurchase 10%
of its shares outstanding and further completed several additional share repurchases. We believe management and the board acted in
good faith to maximize shareholder value through shareholder-friendly capital allocation; on April 11, 2016, we disclosed that we
sold shares in the open market, decreasing our holdings below 5%.
First Financial Northwest,
Inc. (“FFNW”) - We filed our original Schedule 13D reporting our position on September 12, 2011. At the Company’s
2012 annual meeting, we solicited an overwhelming majority of shareholder votes for our nominee based on our position that Victor Karpiak
(then Chairman and CEO) should be removed from the Company and board. After the Company pushed to have our votes invalidated, we sued
to enforce our rights. In 2013, we settled with the Company. Our nominee, Kevin Padrick, was seated on the board, and Mr. Karpiak resigned
as Chairman. The board later replaced Mr. Karpiak as CEO. We filed two additional lawsuits arising from the invalidation of our votes
at the 2012 election, both of which we settled.
Since 2013, we believed management
and the board acted in good faith by cleaning up non-performing assets and reaching a moderate level of profitability, and they maximized
shareholder value by repurchasing in excess of 40% of FFNW’s shares. In our estimation, FFNW’s market price increased to reflect
fair value; on October 11, 2016, we disclosed that we sold our shares in the open market. Kevin Padrick continued to serve on the board.
Alamogordo Financial Corp.
(“ALMG”) - We filed our original Schedule 13D reporting our position on May 11, 2015. We urged management and the board
to provide meaningful returns to shareholders either through a second-step conversion or by effectuating a shareholder-friendly capital
allocation program. On March 7, 2016, ALMG announced and later completed a second-step conversion which we believe maximized shareholder
value. On October 14, 2016, we disclosed that we sold shares of the converted Company, Bancorp 34, Inc., in the open market, decreasing
our holdings below 5%.
Malvern Bancorp, Inc. (“MLVF”)
- We filed our original Schedule 13D reporting our position on May 30, 2008. When we announced our reporting position, a majority of MLVF’s
shares were held by a mutual holding company controlled by MLVF’s board. On October 26, 2010, we demanded that MLVF pursue a derivative
action against its directors for breach of their fiduciary duties. MLVF failed to pursue the action and, on June 3, 2011, we sued MLVF’s
directors in Chester County, Pennsylvania, demanding that the court, among other things, order the directors to properly consider pursuing
a second step conversion. On November 9, 2011, Judge Howard F. Riley Jr. overruled the director defendants’ preliminary objections
to the derivative lawsuit.
CUSIP No. 71103B102 |
SCHEDULE 13D |
Page 19 |
On January 17, 2012, MLVF
announced its intention to undertake a second step conversion and we withdrew the lawsuit. The conversion and stock offering were completed
on October 11, 2012, and our shares were converted into shares of Malvern Bancorp, Inc. On September 5, 2013, we notified MLVF of our
intention to nominate John P. O’Grady for election as a director at its 2014 annual meeting, but we later reached an agreement with
MLVF for Mr. O’Grady to join its board of directors and executed a standstill agreement. Subsequently, MLVF’s long-standing
CEO resigned, its chairman of the board stepped down and several directors resigned from the board of directors. On November 25, 2014,
we terminated our standstill agreement with MLVF, including the agreement’s performance targets. John P. O’Grady continued
to serve as an independent director on the board but no longer as our nominee.
After meeting with the new
CEO and the new chairman of the board, we believed that management and the board of directors were focused on maximizing shareholder value
and were successful in doing so. On December 7, 2016, we disclosed that we sold shares in the open market, decreasing our holdings below
5%.
FSB Community Bankshares,
Inc. (“FSBC”) - We filed our original Schedule 13D reporting our position on October 26, 2015. We urged management and
the board to provide meaningful returns to shareholders either through a second-step conversion or by effectuating a shareholder-friendly
capital allocation program. On March 3, 2016, FSBC announced and later completed a second-step conversion which we believe maximized shareholder
value. On December 9, 2016, we disclosed that we sold shares of the converted Company, FSB Bancorp, Inc., in the open market, decreasing
our holdings below 5%.
Pinnacle Bancshares, Inc.
(“PCLB”) - We filed our original Schedule 13D reporting our position on September 23, 2014. On November 14, 2014, PCLB
announced the continuation of its share repurchase plan and announced a new repurchase plan on May 25, 2016. We believe management and
the board acted in good faith to maximize shareholder value through multiple share repurchases. On December 13, 2016, we disclosed that
we sold our shares in the open market.
Sugar Creek Financial Corp.
(“SUGR”) - We filed our original Schedule 13D reporting our position on April 21, 2014. We believe management and the
board acted in good faith to maximize shareholder value through share repurchases. In our estimation, SUGR’s market price increased
to reflect fair value; on July 28, 2017, we disclosed that we sold our shares in the open market.
Provident Financial Holdings,
Inc. (“PROV”) - We filed our original Schedule 13D reporting our position on October 7, 2011. We supported PROV’s
consistent efforts to maximize shareholder value through a meaningful number of share repurchases. In our estimation, PROV’s market
price increased to reflect fair value; on September 25, 2017, we disclosed that we sold shares in the open market, decreasing our holdings
below 5%.
West Town Bancorp, Inc.
(“WTWB”) - We believe management and the board acted in good faith to maximize shareholder value, and on July 18, 2019,
we sold our shares to WTWB. WTWB deregistered its shares of common stock effective in 2003.
IF Bancorp, Inc. (“IROQ”)
- We filed our original Schedule 13D reporting our position on March 5, 2012. We urged
management and the board to maximize shareholder value through share repurchases. We believe IROQ acted in good faith to do so and, in
our estimation, IROQ’s market price increased to reflect fair value. On September 24, 2019, we disclosed that we sold shares in
the open market, decreasing our holdings below 5%.
CUSIP No. 71103B102 |
SCHEDULE 13D |
Page 20 |
NorthEast Community Bancorp,
Inc. (“NECB”) - We filed our original Schedule 13D reporting our position on November 5, 2007. A majority of NECB’s
shares were held by a mutual holding company controlled by NECB’s board. We opposed the grant of an equity incentive plan for the
NECB board, and the board and management never received such a plan while they remained an MHC.
In July of 2010, we delivered
a written demand to NECB demanding to inspect its shareholder list, but NECB refused to supply us with the list. We sued NECB in federal
court in New York seeking an order compelling compliance. In August of 2010, NECB produced the list of shareholders to us. In the fall
of 2011, we sent a letter to NECB’s board of directors demanding that NECB expand the board with disinterested directors to consider
a second step conversion. In October of 2011, we filed a lawsuit in New York state court against NECB, the mutual holding company, and
their boards of directors, personally and derivatively, for breach of fiduciary duty arising out of failure to fairly consider a second
step conversion and alleging conflict of interest. During the course of a protracted litigation, we deposed every named director including
a former director. Although the New York trial court judge agreed with us in partially granting our motion for summary judgment and finding
that upon trial the defendants would bear the burden of the entire fairness standard, the First Department reversed on other grounds;
the New York Court of Appeals declined to hear our appeal.
After years of urging NECB
to become fully public, the company announced on November 4, 2020 that it would undertake a second-step conversion. We supported NECB’s
decision to do so, and on July 12, 2021, the company completed its second-step conversion. We sold shares in the open market, decreasing
our holdings below 5%.
NECB shares of common stock
were deregistered from 2016 to 2021.
Parkway Acquisition Corp.
(“PKKW”) - We filed our original Schedule 13D reporting our position on May 27, 2020. On November 24, 2021, we disclosed
that we sold our shares in the open market.
Wayne Savings
Bancshares, Inc. (“WAYN”) - We filed our original Schedule 13D reporting our position on October 8, 2010.
In 2014, we supported H. Stewart Fitz Gibbon III’s appointment as CEO and as a director to the board. We believed management
and the board were acting in good faith to position WAYN to maximize shareholder value. When the board announced Mr. Fitz
Gibbon’s unexplained resignation on December 20, 2016, we nominated a director for election at WAYN’s 2017 annual
meeting. We lost by a narrow margin.
We nominated a director for
election at WAYN’s 2018 annual meeting with the belief that there have been multiple suitors interested in acquiring WAYN, and that
the board has a duty to evaluate strategic alternatives to maximize shareholder value. Our nominee was not elected.
Due to projected and achieved
Return on Equity (ROE) targets since WAYN’s 2018 annual meeting, we did not seek board representation in 2019.
In our estimation, WAYN’s
market price increased to reflect fair value; on May 23, 2022, we sold shares to WAYN, decreasing our holdings below 5%.
WAYN deregistered its shares
of common stock effective in 2018.
Cincinnati Bancorp, Inc.
(“CNNB”) - We filed our original Schedule 13D reporting our position on May 7, 2020. We believe management and
the board acted in good faith and took steps to increase shareholder value, such as repurchasing shares up to book value. In our estimation,
CNNB’s market price increased to reflect fair value; on September 21, 2022, we disclosed that we sold shares in the open market,
decreasing our holdings below 5%.
IV.
Garrison Capital, Inc.
(“GARS”) - We filed our original Schedule 13D reporting our position on January 21, 2020. In April 2020, we sold our stake
with the belief that the global pandemic made activism in a business development company problematic at that time.
V.
Kingsway Financial Services
Inc. (“KFS”) - We filed our original Schedule 13D reporting our position on November 7, 2008. We requested a meeting with
KFS’s CEO and chairman to discuss ways to maximize shareholder value and minimize both operational and balance sheet risks, but
the CEO was unresponsive. We then requisitioned a special shareholder meeting to remove the CEO and chairman from the KFS board and replace
them with our two nominees. On January 7, 2009, we entered into a settlement agreement with KFS whereby, among other things, the CEO resigned
from the KFS board and KFS expanded its board from nine to ten seats and appointed our nominees to fill the two vacant seats. By April
23, 2009, the board was reconstituted with just three of the original ten legacy directors remaining. Also, Joseph Stilwell was appointed
to fill the vacancy created by the resignation of one of our nominees, and our other nominee was elected chairman of the board. In addition,
the board fired the CEO and CFO for incompetence and insubordination. By November 3, 2009, all of the legacy directors had resigned from
the board.
CUSIP No. 71103B102 |
SCHEDULE 13D |
Page 21 |
Since then, Joseph Stilwell
has remained on the board, and KFS has sold non-core assets, repurchased public debt at a discount to face value, sold a credit-sensitive
asset, disposed of its subsidiary Lincoln General, substantially reduced its expenses, and reduced other balance sheet and operations
risks. On May 24, 2018, we announced that we would withhold our proxy votes on the re-election of the then current CEO at the KFS annual
meeting. Although the CEO was re-elected to the board, the board announced on September 5, 2018, a CEO transition in which he would no
longer serve as CEO. The KFS board appointed John T. Fitzgerald as the new CEO to execute its warranty segment strategy.
On September 21, 2020, our
representative, Corissa B. Porcelli, was elected to the board of directors.
Wheeler Real Estate Investment
Trust, Inc. (“WHLR”) - We filed our original Schedule 13D reporting our position on July 3, 2017. On December 4, 2017,
we announced our nominees and alternate nominee for WHLR’s 2018 election of directors. On January 17, 2018, we called for Jon Wheeler’s
removal from WHLR, and he was fired by the board on January 29, 2018.
We ran three nominees for
election as directors at WHLR's 2018 annual meeting. They lost. On October 24, 2019, we announced our nominees, Joseph D. Stilwell, Paula
J. Poskon and Kerry G. Campbell, for election as directors at WHLR’s annual meeting. Several of WHLR’s legacy directors did
not stand for reelection. On December 19, 2019, we defeated the three legacy directors that stood for reelection by more than a 7 to 1
margin and our three nominees were elected to WHLR’s board. Later that day, WHLR announced that its CFO had resigned, and twelve
days later, the only remaining legacy director resigned. The CEO was fired on April 13, 2020. On July 15, 2021, our representative, E.
J. Borrack, was elected to the board of directors. On October 28, 2022, the board appointed Megan Parisi, also our representative, to
serve as director.
VI.
Sound Financial, Inc.
(“SFBC”) - We filed our original Schedule 13D reporting our position on November 21, 2011. We urged management
and the board to pursue a second step conversion. On August 22, 2012, Sound Financial Bancorp, Inc. (“SFBC”)
announced completion of its second step conversion and our shares of SNFL were converted into shares of SFBC. On August 5, 2020, the
Board of Governors of the Federal Reserve notified us that it would not object to our request to buy additional shares of SFBC up to
14.99%. We support maximizing shareholder value at SFBC.
Seneca-Cayuga Bancorp,
Inc. (“SCAY”) / Generations Bancorp NY, Inc. (GBNY) - We filed our original Schedule 13D reporting our position in SCAY
on September 15, 2014. We believed SCAY was positioned to provide meaningful returns to its shareholders either through a second-step
conversion or a shareholder-friendly capital allocation program. We encouraged management and the board to choose the path that would
maximize shareholder value, but they refused. On January 29, 2018, we served a letter to the board demanding that SCAY undertake a second-step
conversion. Instead, SCAY announced its merger with a smaller mutual. We re-served a demand for a second-step conversion on June 12, 2019,
and in furtherance to that, we served a demand for inspection of SCAY’s books and records on September 4, 2019. When SCAY refused
to permit the inspection of its books and records, we filed, on November 11, 2019, a motion to compel the production of those books and
records in U.S. District Court for the Western District of New York. SCAY filed a motion to dismiss, which the Judge denied on April 7,
2020. The Judge ordered SCAY to begin the production of board materials for our inspection by June 1, 2020. SCAY announced its intention
to second-step on May 6, 2020, and we discontinued our lawsuit. On January 12, 2021, SCAY completed its second-step conversion and ceased
to exist. The new stock holding company, Generations Bancorp NY, Inc. (GBNY), began trading on January 13, 2021. We believe GBNY should
begin repurchasing shares as soon as regulations permit it to do so.
CIB Marine
Bancshares, Inc. (“CIBH”) - We believe management and the board are acting in good faith to maximize shareholder
value. On December 10, 2021, the Federal Reserve Bank of Chicago notified us that it would not object to our request to buy
additional shares of CIBH up to 14.99%. CIBH deregistered its shares of common stock effective in 2012.
U & I Financial Corp.
(“UNIF”) - We have met with management and believe we can work with management and
the board to maximize shareholder value. Although UNIF’s common stock trades publicly on the OTCQX U.S., UNIF does not file reports
with the SEC.
ICC Holdings, Inc. (“ICCH”)
- We filed our original Schedule 13D reporting our position on December 28, 2020. We believe management has done an ineffective job at
maximizing shareholder value to date.
CUSIP No. 71103B102 |
SCHEDULE 13D |
Page 22 |
Item 5. Interest in Securities of the Issuer
The members of the Stilwell Group beneficially
own an aggregate of 549,587 shares of Common Stock. Rodney H. Blackwell beneficially owns 2,092 shares of Common Stock. The percentages
reported herein are calculated based on the number of outstanding shares of Common Stock, 4,678,186, reported as the number of outstanding
shares as of March 8, 2023, in the Issuer’s Form 10-K filed with the Securities and Exchange Commission on March 15, 2023. The purchases
and sales of Common Stock reported in this item, if any, were made in open-market transactions.
|
(A) |
Stilwell Value Partners VII |
|
|
|
|
(a) |
Aggregate number of shares beneficially owned: 549,587
Percentage: 11.7% |
|
(b) |
1. Sole power to vote or to direct vote: 0 |
|
|
2. Shared power to vote or to direct vote: 549,587 |
|
|
3. Sole power to dispose or to direct the disposition: 0 |
|
|
4. Shared power to dispose or to direct disposition: 549,587 |
|
(c) |
Within the past 60 days, Stilwell Value Partners VII has made no purchases, sales or transfers of shares of Common Stock. |
|
(d) |
Because he is the managing member and owner of Stilwell Value LLC, which is the general partner of Stilwell Value Partners VII, Joseph Stilwell has the power to direct the affairs of Stilwell Value Partners VII, including the voting and disposition of shares of Common Stock held in the name of Stilwell Value Partners VII. Therefore, Joseph Stilwell is deemed to share voting and disposition power with Stilwell Value Partners VII with regard to those shares of Common Stock. |
|
|
|
|
(B) |
Stilwell Activist Fund |
|
(a) |
Aggregate number of shares beneficially owned: 549,587
Percentage: 11.7% |
|
(b) |
1. Sole power to vote or to direct vote: 0 |
|
|
2. Shared power to vote or to direct vote: 549,587 |
|
|
3. Sole power to dispose or to direct the disposition: 0 |
|
|
4. Shared power to dispose or to direct disposition: 549,587 |
|
(c) |
Within the past 60 days, Stilwell Activist Fund purchased shares of Common Stock as set forth in Schedule A attached hereto and incorporated herein by reference. |
|
(d) |
Because he is the managing member and owner of Stilwell Value LLC, which is the general partner of Stilwell Activist Fund, Joseph Stilwell has the power to direct the affairs of Stilwell Activist Fund, including the voting and disposition of shares of Common Stock held in the name of Stilwell Activist Fund. Therefore, Joseph Stilwell is deemed to share voting and disposition power with Stilwell Activist Fund with regard to those shares of Common Stock. |
CUSIP No. 71103B102 |
SCHEDULE 13D |
Page 23 |
|
(C) |
Stilwell Activist Investments |
|
|
|
|
(a) |
Aggregate number of shares beneficially owned: 549,587
Percentage: 11.7% |
|
(b) |
1. Sole power to vote or to direct vote: 0 |
|
|
2. Shared power to vote or to direct vote: 549,587 |
|
|
3. Sole power to dispose or to direct the disposition: 0 |
|
|
4. Shared power to dispose or to direct disposition: 549,587 |
|
(c) |
Except for purchases of shares of Common Stock that were previously disclosed in the Fifteenth Amendment, within the past 60 days, Stilwell Activist Investments purchased shares of Common Stock as set forth in Schedule A attached hereto and incorporated herein by reference. |
|
|
|
|
(d) |
Because he is the managing member and owner of Stilwell Value LLC, which is the general partner of Stilwell Activist Investments, Joseph Stilwell has the power to direct the affairs of Stilwell Activist Investments, including the voting and disposition of shares of Common Stock held in the name of Stilwell Activist Investments. Therefore, Joseph Stilwell is deemed to share voting and disposition power with Stilwell Activist Investments with regard to those shares of Common Stock. |
|
|
|
|
(D) |
Stilwell Value LLC |
|
(a) |
Aggregate number of shares beneficially owned: 549,587
Percentage: 11.7% |
|
(b) |
1. Sole power to vote or to direct vote: 0 |
|
|
2. Shared power to vote or to direct vote: 549,587 |
|
|
3. Sole power to dispose or to direct the disposition: 0 |
|
|
4. Shared power to dispose or to direct disposition: 549,587 |
|
(c) |
Stilwell Value LLC has made no purchases, sales or transfers of shares of Common Stock. |
|
(d) |
Because he is the managing member and owner of Stilwell Value LLC, Joseph Stilwell has the power to direct the affairs of Stilwell Value LLC. Stilwell Value LLC is the general partner of Stilwell Value Partners VII, Stilwell Activist Fund, and Stilwell Activist Investments. Therefore, Stilwell Value LLC may be deemed to share with Joseph Stilwell voting and disposition power with regard to the shares of Common Stock held by Stilwell Value Partners VII, Stilwell Activist Fund, and Stilwell Activist Investments. |
CUSIP No. 71103B102 |
SCHEDULE 13D |
Page 24 |
|
(E) |
Joseph Stilwell |
|
|
|
|
(a) |
Aggregate number of shares beneficially owned: 549,587
Percentage: 11.7% |
|
(b) |
1. Sole power to vote or to direct vote: 0 |
|
|
2. Shared power to vote or to direct vote: 549,587 |
|
|
3. Sole power to dispose or to direct the disposition: 0 |
|
|
4. Shared power to dispose or to direct disposition: 549,587 |
|
(c) |
Joseph Stilwell has made no purchases, sales or transfers of shares of Common Stock. |
|
(F) |
Rodney H. Blackwell |
|
|
|
|
(a) |
Aggregate number of shares beneficially owned: 2,092
Percentage: 0.0% |
|
(b) |
1. Sole power to vote or to direct vote: 1,980 |
|
|
2. Shared power to vote or to direct vote: 112 |
|
|
3. Sole power to dispose or to direct the disposition: 1,980 |
|
|
4. Shared power to dispose or to direct disposition: 112 |
|
(c) |
Within the past 60 days, Rodney H. Blackwell has made no purchases, sales or transfers of shares of Common Stock. |
Item 6. Contracts, Arrangements, Understandings
or Relationships With Respect to Securities of the Issuer
On January 23, 2023, members
of the Stilwell Group entered into a nominee agreement (the “Nominee Agreements”) with each of Rodney H. Blackwell and Stewart
F. Peck (the “Nominees”), pursuant to which the Nominees have agreed, should members of the Stilwell Group so choose, to stand
for election to the Issuer’s board of directors at the Issuer’s 2023 annual shareholder meeting, and to serve as director
if elected. Pursuant to the Nominee Agreements, members of the Stilwell Group have agreed to (i) reimburse all of the Nominees’
actual out-of-pocket expenses incurred in connection with the nomination process and (ii) indemnify each Nominee for any damages and expenses
incurred in connection with his nomination for director of the Issuer. The foregoing summary of the Nominee Agreements is qualified in
its entirety by reference to the full text of the Nominee Agreements, copies of which are filed as Exhibits 15 and 16 attached to the
Fourteenth Amendment and are incorporated by reference herein.
Other than the Nominee Agreements
and the Power of Attorney, there are no contracts, arrangements, understandings or relationships among the persons named in Item 2 hereof
and between such persons and any person with respect to any securities of the Issuer, including but not limited to transfer or voting
of any of the securities, finders’ fees, joint ventures, loan or option arrangements, puts or calls, guarantees of profits, divisions
of profits or losses, or the giving or withholding of proxies, except for sharing of profits. Stilwell Value LLC, in its capacity as general
partner of Stilwell Value Partners VII, Stilwell Activist Fund, and Stilwell Activist Investments, and Joseph Stilwell, in his capacities
as the managing member and owner of Stilwell Value LLC, are entitled to an allocation of a portion of profits.
See Items 1 and 2 above regarding
disclosure of the relationships between members of the 13D Group, which disclosure is incorporated herein by reference.
CUSIP No. 71103B102 |
SCHEDULE 13D |
Page 25 |
Item 7. Material to be Filed as Exhibits
Exhibit No. |
|
Description |
1 |
|
Joint Filing Agreement, dated November 23, 2020, filed with the Original Schedule 13D. |
2 |
|
Letter to the Shareholders of the Issuer, dated February 9, 2021. |
3 |
|
Nominee Agreement, dated February 16, 2021, with Nominee Peter Prickett, filed with the Fourth Amendment. |
4 |
|
Letter to Shareholders of the Issuer, dated March 16, 2021, filed with the Fourth Amendment. |
5 |
|
Letter to Shareholders of the Issuer, dated March 29, 2021, filed with the Fifth Amendment. |
6 |
|
Letter to Shareholders of the Issuer, dated April 8, 2021, filed with the Seventh Amendment. |
7 |
|
Letter to Shareholders of the Issuer, dated April 19, 2021, filed with the Eighth Amendment. |
8 |
|
Letter to Shareholders of the Issuer, dated May 5, 2021, filed with the Ninth Amendment. |
9 |
|
Nominee Agreement, dated February 1, 2022, with Nominee Rodney H. Blackwell, filed with the Tenth Amendment. |
10 |
|
Nominee Agreement, dated February 2, 2022, with Jonathan W. Briggs, filed with the Tenth Amendment. |
11 |
|
Nominee Agreement, dated February 2, 2022, with Ronald Wade Robertson, Jr, filed with the Tenth Amendment. |
12 |
|
Nominee Agreement, dated February 3, 2022, with Gregory H. Browne., filed with the Tenth Amendment. |
13 |
|
Letter to Shareholders of the Issuer, dated March 14, 2022, filed with the Eleventh Amendment. |
14 |
|
Letter to Shareholders of the Issuer, dated April 4, 2022, filed with the Twelfth Amendment. |
15 |
|
Nominee Agreement, dated January 23, 2023, with Rodney H. Blackwell, filed with the Fourteenth Amendment. |
16 |
|
Nominee Agreement, dated January 23, 2023, with Stewart F. Peck, filed with the Fourteenth Amendment. |
17 |
|
Amended Joint Filing Agreement, dated January 25, 2023, filed with the Fourteenth Amendment. |
18 |
|
Power of Attorney, dated January 23, 2023, filed with the Fourteenth Amendment. |
19 |
|
Letter to Shareholders of the Issuer, dated March 23, 2023, filed with the Fifteenth Amendment. |
20 |
|
Letter to Shareholders of the Issuer, dated April 12, 2023. |
SIGNATURES
After reasonable inquiry and
to the best of our knowledge and belief, we certify that the information set forth in this statement is true, complete and correct.
Date: April 12, 2023
|
STILWELL VALUE PARTNERS VII, L.P. |
|
|
|
By: |
STILWELL VALUE LLC |
|
|
General Partner |
|
|
|
|
|
/s/ Megan Parisi |
|
|
By: |
Megan Parisi |
|
|
|
Member |
|
STILWELL ACTIVIST FUND, L.P. |
|
|
|
|
By: |
STILWELL VALUE LLC |
|
|
General Partner |
|
|
|
|
/s/ Megan Parisi |
|
|
By: |
Megan Parisi |
|
|
|
Member |
|
|
|
|
|
STILWELL ACTIVIST INVESTMENTS, L.P. |
|
|
|
By: |
STILWELL VALUE LLC |
|
|
General Partner |
|
|
|
|
|
|
/s/ Megan Parisi |
|
|
By: |
Megan Parisi |
|
|
|
Member |
|
|
|
|
|
|
STILWELL VALUE LLC |
|
|
|
|
|
/s/ Megan Parisi |
|
|
By: |
Megan Parisi |
|
|
|
Member |
|
|
|
|
|
JOSEPH STILWELL |
|
|
|
|
|
/s/ Joseph Stilwell* |
|
|
RODNEY H. BLACKWELL |
|
|
|
|
|
/s/ Rodney H. Blackwell* |
*/s/ Megan Parisi |
|
Attorney-In-Fact |
|
SCHEDULE A
Transactions by Stilwell Activist Fund
Nature of Transaction |
|
Date |
|
|
Number of
Securities |
|
|
Price Per
Share |
|
|
Total
Purchase
or Sale
Price |
|
Purchase of Shares of Common Stock |
|
|
03/29/2023 |
|
|
|
2,500 |
|
|
$ |
12.0000 |
|
|
$ |
30,000.00 |
|
Transactions by Stilwell Activist Investments
Nature of Transaction |
|
Date |
|
|
Number of
Securities |
|
|
Price Per
Share |
|
|
Total
Purchase
or Sale
Price |
|
Purchase of Shares of Common Stock |
|
|
03/24/2023 |
|
|
|
2,500 |
|
|
$ |
13.0000 |
|
|
$ |
32,500.00 |
|
Purchase of Shares of Common Stock |
|
|
03/27/2023 |
|
|
|
2,500 |
|
|
$ |
12.7500 |
|
|
$ |
31,875.00 |
|
Purchase of Shares of Common Stock |
|
|
04/10/2023 |
|
|
|
500 |
|
|
$ |
11.7750 |
|
|
$ |
5,887.50 |
|
Exhibit 20
Stilwell
Activist Investments, L.P.
111 Broadway, 12th Floor
New York,
NY 10006
(787)
985-2194
INFO@STILWELLGROUP.COM
April 12, 2023
Dear Fellow PFBX Owner,
The following individuals are the directors of our Company:
Ronald G. Barnes • Padrick D. Dennis • Jeffrey H. O’Keefe
Paige Reed Riley • George J. Sliman, III
(and Chevis C. Swetman)
These are the folks who are unwilling or incapable of supervising
the Swetmans.
In addition to both the abysmal financial results over decades
and Chevis’s apparent refusal to consider combining with a better run, local bank, here is another example, in Chevis’s own
words, illustrating just how pathetically, how cowardly the board members listed above have behaved.
Chevis wrote in the annual shareholder letter—without
a hint of irony (or embarrassment!)—that the Bank will “improv(e) the efficiency ratio to the average efficiency ratio of
the bank’s composite PEER group over the next ten years.”*
What businessperson would not fire anyone who makes it a
“primary goal” to become merely average in ten years’ time? Wouldn’t any competent businessperson fire
posthaste the poorly performing CEO who made this proposal? Yet, somehow, this absurdity is sent to us, PFBX’s owners, by our Company’s
CEO (and director), Chevis Swetman, and touted as an “important milestone.”
Does Chevis have incriminating photos of his fellow directors
. . . because in the face of this incompetence, we can’t imagine that the PFBX board is not the most passive, ill-equipped group
of individuals masquerading as businesspeople in the State of Mississippi.
|
Sincerely, |
|
|
|
![](https://content.edgar-online.com/edgar_conv_img/2023/04/12/0001104659-23-044255_image_002.jpg) |
|
|
|
Megan Parisi |
|
(787) 985-2194 |
|
mparisi@stilwellgroup.com |
* 2022 Annual Shareholder Letter (emphasis added).
You can vote by telephone,
online or by signing and dating the enclosed GREEN proxy card
and returning it in the postage-paid
envelope.
If you have any questions,
require assistance in voting your GREEN proxy card, or need additional copies of our proxy materials, please
contact Okapi Partners at the
phone numbers or email
listed below.
Okapi Partners LLC
Attn: Ms. Teresa Huang
1212 Avenue of the Americas, 17th Floor
New York, New York 10036
+ 1 (212) 297-0720 (Main)
+ 1 (855) 305-0856 (Toll-Free)
Email: info@okapipartners.com