Filing Details

Phillip M. Goldberg Foley & Lardner LLP 321 North Clark Street Suite 2800 Chicago, IL  60654-5313 (312) 832-4549

Peter D. Fetzer Foley & Larder LLP 777 East Wisconsin Avenue Suite 3800 Milwaukee, WI  53202-5306 (414) 297-5596

 

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The Reporting Persons (as defined herein) may be deemed to be members of a “group” within the meaning of Section 13(d)(3) of the Exchange Act (as defined herein) and may be deemed to beneficially own the Common Stock (as defined herein) owned by the other Reporting Persons.  The share amounts reported above do not reflect any Common Stock the Reporting Persons may be deemed to be beneficially owned as a result of membership in a “group” and each of the Reporting Persons expressly disclaim such membership.

 

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The Reporting Persons (as defined herein) may be deemed to be members of a “group” within the meaning of Section 13(d)(3) of the Exchange Act (as defined herein) and may be deemed to beneficially own the Common Stock (as defined herein) owned by the other Reporting Persons.  The share amounts reported above do not reflect any Common Stock the Reporting Persons may be deemed to be beneficially owned as a result of membership in a “group” and each of the Reporting Persons expressly disclaim such membership.

 

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The Reporting Persons (as defined herein) may be deemed to be members of a “group” within the meaning of Section 13(d)(3) of the Exchange Act (as defined herein) and may be deemed to beneficially own the Common Stock (as defined herein) owned by the other Reporting Persons.  The share amounts reported above do not reflect any Common Stock the Reporting Persons may be deemed to be beneficially owned as a result of membership in a “group” and each of the Reporting Persons expressly disclaim such membership.

 

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The Reporting Persons (as defined herein) may be deemed to be members of a “group” within the meaning of Section 13(d)(3) of the Exchange Act (as defined herein) and may be deemed to beneficially own the Common Stock (as defined herein) owned by the other Reporting Persons.  The share amounts reported above do not reflect any Common Stock the Reporting Persons may be deemed to be beneficially owned as a result of membership in a “group” and each of the Reporting Persons expressly disclaim such membership.

 

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The Reporting Persons (as defined herein) may be deemed to be members of a “group” within the meaning of Section 13(d)(3) of the Exchange Act (as defined herein) and may be deemed to beneficially own the Common Stock (as defined herein) owned by the other Reporting Persons.  The share amounts reported above do not reflect any Common Stock the Reporting Persons may be deemed to be beneficially owned as a result of membership in a “group” and each of the Reporting Persons expressly disclaim such membership.

This amendment reflects, among other things, that the reporting persons identified below no longer hold more than five percent of the Common Stock (as defined below) of Coastway Bancorp, Inc.  So, the reporting persons are no longer required to file a Schedule 13D to report their holdings of Common Stock, and upon the filing of this amendment, the reporting persons will cease to mandatorily report their holdings of Common Stock on Schedule 13D.

 

This amended Schedule 13D (this “Schedule 13D”) is being filed on behalf of MHC Mutual Conversion Fund, L.P., a Texas limited partnership (the “Fund”), Clover Partners, L.P., a Texas limited partnership and the general partner of the Fund (the “GP”), Clover Partners Management, L.L.C., a Texas limited liability company and the general partner of the GP (“Clover”), and Johnny Guerry, the managing partner of Clover (collectively, the “MHC Mutual Conversion Fund Group”), relating to common stock ($0.01 par value) (the “Common Stock”) of Coastway Bancorp, Inc., a Maryland corporation (the “Issuer” or the “Company”).

 

Specifically, this Schedule 13D relates to Common Stock of the Issuer purchased by the GP through the account of the Fund.  The Fund may direct the vote and disposition of the 170,100 shares of Common Stock it holds directly.  The GP serves as the investment adviser and general partner to the Fund and may direct the vote and disposition of the 170,100 shares of Common Stock held by the Fund.  Clover serves as the general partner of the GP and may direct the GP to direct the vote and disposition of the 170,100 shares of Common Stock held by the Fund.  As the managing partner of Clover, Mr. Guerry may direct the vote and disposition of the 170,100 shares of Common Stock held by the Fund.

 

This Schedule 13D is also being filed on behalf of Mike I. Shafir.  Mr. Shafir beneficially owns in the aggregate 3,750 shares of the Common Stock.

 

By virtue of the MHC Mutual Conversion Fund Group and Mr. Shafir coordinating their activities with regard to a potential proxy contest, as reflected in the attached Notice of Intent to Nominate Directors, dated December 22, 2017, the MHC Mutual Conversion Fund Group and Mr. Shafir may be deemed to constitute a “group” for purposes of Section 13(d)(3) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”).  Mr. Shafir is an employee of Clover Partners, L.P.  The MHC Mutual Conversion Fund Group expressly disclaims beneficial ownership of securities held by Mr. Shafir, and Mr. Shafir expressly disclaims beneficial ownership of securities held by the MHC Mutual Conversion Fund Group.

 

Item 1.

Security and Issuer

Item 2.

Identity and Background

 

Each of the persons identified in this Schedule 13D is sometimes referred to as a “Reporting Person” and, collectively, as the “Reporting Persons.”  Each of the Reporting Persons is a party to that certain Joint Filing Agreement that was attached as Exhibit 99.1 to the amended Schedule 13D filed on December 22, 2017.

 

The principal place of business for each of the Reporting Persons is 100 Crescent Court, Suite 575, Dallas, TX 75201.

 

 

Mr. Shafir is an employee of Clover Partners, L.P., and is responsible for generating investment ideas in both the general banking and MHC conversion sectors.

 

 

 

 

Item 3.

Source and Amount of Funds

As of the date of this Schedule 13D, the Fund had invested $ 3,177,354 (inclusive of brokerage commissions) in Common Stock of the Issuer.  The source of these funds was the working capital of the Fund.

 

As of the date of this Schedule 13D, Mr. Shafir had invested $61,829 (inclusive of brokerage commissions) in Common Stock of the Issuer.  The source of these funds was personal investment capital.

 

 

Item 4.

Purpose of the Transaction

The Reporting Persons purchased the Common Stock for investment purposes.  The intent of the Reporting Persons is to influence the policies of the Issuer and assert shareholder rights, with a goal of maximizing the value of the Common Stock.

 

Consistent with its investment purpose, the Reporting Persons may engage in communications with one or more officers of the Issuer and/or one or more members of the board of directors of the Issuer, and/or one or more representatives of the Issuer regarding the Issuer, including, but not limited to its business, management, operations, assets, capitalization, financial condition, governance, strategy and future plans.

 

Mr. Shafir notified the Company that he intended to nominate himself and Mr. David Verlander for election to the Board of Directors of the Company at the 2018 Annual Meeting of Shareholders on the WHITE proxy card.  A copy of the Notice of Intent to Nominate Directors, dated December 22, 2017, was attached as Exhibit 99.2 to the amended Schedule 13D filed on January 8, 2018.  This Notice of Intent to Nominate Directors was resubmitted to the Company on January 8, 2018, without changes, to ensure that the Company had a fully executed version of the Notice.

 

The Reporting Persons may purchase, sell or transfer Common Stock beneficially owned by them from time to time in public transactions depending on economic considerations and, subject to the below, the results of such communications.  Any such transactions may be effected at any time or from time to time subject to any applicable limitations imposed on the sale of the Common Stock by applicable law.

 

Except to the extent the foregoing may be deemed a plan or proposal, the Reporting Persons have no plans or proposals which relate to, or could result in, any of the matters referred to in paragraphs (a) through (j), inclusive, of the instructions to Item 4 of the Schedule 13D.  The Reporting Persons may, at any time and from time to time, review or reconsider their position and/or change their purpose and/or formulate plans or proposals with respect thereto.

 

Item 5.

Interest in Securities of the Issuer

(a) - (b) The MHC Mutual Conversion Fund Group beneficially owns 170,100 shares of Common Stock, which represents 3.9% of the Issuer’s outstanding shares of Common Stock.  The percentage of beneficial ownership of the Reporting Persons, as reported in this Schedule 13D, was calculated by dividing (i) the total number of shares of Common Stock beneficially owned by the MHC Mutual Conversion Fund Group as set forth in this Schedule 13D, by (ii) the 4,386,351 shares of Common Stock outstanding as of March 1, 2018, as reported in the Issuer’s annual report on Form 10-K filed with the Securities and Exchange Commission on March 12, 2018.

 

The GP, in its capacity as investment manager and general partner to the Fund has power to vote the 170,100 shares of Common Stock and the power to dispose of the 170,100 shares of Common Stock held in the Fund.  Clover, in its capacity as general partner of the GP and Mr. Guerry, as the managing partner of Clover, may each be deemed to beneficially own the Common Stock held in the Fund.

 

 

Mr. Shafir beneficially owns in the aggregate 3,750 shares of the Common Stock, over which he has sole voting and dispositive power.

 

Date	Number of Shares (Sold)	Price Per Share	Where and How Transaction Effected
3/15/2018	(100,000)	$27.206	Open Market
3/16/2018	(50,000)	$27.1642	Open Market
3/19/2018	(50,000)	$27.2006	Open Market

The filing of this Schedule 13D shall not be construed as admission that the GP, Clover, or Mr. Guerry is for the purposes of Section 13(d) or 13(g) of the Exchange Act the beneficial owner of any of the 170,100 shares of Common Stock owned by the Fund.  Pursuant to Rule 13d-4, the GP, Clover, and Mr. Guerry disclaim all such beneficial ownership.

 

Mr. Shafir has not effected any transactions in the Common stock within the past sixty days.

 

 

 

Item 6.

Contracts, Arrangements, Understandings or Relationships with Respect to Securities of the Issuer

With respect to the Fund, GP is entitled to (1) an allocation of a portion of profits, if any, and (2) a management fee based upon a percentage of total capital.

 

Mr. Shafir has notified the Company that he intends to nominate himself and Mr. David Verlander for election to the Board of Directors of the Company at the 2018 Annual Meeting of Shareholders on the WHITE proxy card.  The Fund will reimburse the nominees for any expenses that they reasonably incur in connection with the intended solicitation of proxies for use at the Annual Meeting.  To Mr. Shafir’s knowledge, he has no arrangement or understandings with any other person pursuant to which he was or is to be selected as a director or nominee for election as a director of the Company.  To Mr. Verlander’s knowledge, he has no arrangement or understandings with any other person pursuant to which he was or is to be selected as a director or nominee for election as a director of the Company.  Mr. Verlander does not own any shares of Common Stock, directly or indirectly.  None of the nominees is, and will not become, a party to any agreement, arrangement or understanding with, and has not given any commitment or assurance to each other or any other person as to how he, if elected as a director of the Company, will act or vote on any issue or question.

 

 

Other than the foregoing agreements and arrangements, and the Joint Filing Agreement, 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.

 

Item 7.

Material to be Filed as Exhibits

SIGNATURES

After reasonable inquiry and to the best of their knowledge and belief, each of the undersigned certifies that the information set forth in this statement is true, complete and correct.

 

Dated:  March 22, 2018