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The deals also allowed the merged banks to expand into new business ventures. PSFS soon began expanding into new services such as [[Leasing|equipment leasing]], [[corporate finance]] and [[real estate development]].<ref name="inky2" /> In September 1983 PSFS converted from a [[mutual organization]] to a [[stock]] organization selling 35 million shares at US$11.25 each. In January 1984 PSFS began expanding into financial service by buying a loan portfolio and mortgage business from General Electric Credit Corp. for US$568 million. In April 1985 the company acquired four savings and loans in Florida and began paying five cents per share quarterly dividend to stockholders.<ref name="inky1" /> In September of that year, PSFS began doing business under the name Meritor Financial Group to emphasize its expansion into financial services. In 1986 Meritor began operating [[mutual fund]]s through a subsidiary, completing the transition to a full-service financial institution.<ref name="inky1" />
In 1986, the bank went to the U.S. Supreme Court to defend itself against a claim [[sexual harassment]]. In ''[[Meritor Savings Bank v. Vinson]]'', the court found the bank liable under the [[1964 Civil Rights Act]].
Things soon took a turn for the worse as the company began losing millions through its new business ventures as its competitors began encroaching on Meritor's home market. Meritor's stock prices continuously dropped from almost the moment they were first issued.<ref name="inky2" /> In August 1985 Meritor revealed it invested $215 million in a Virginia mortgage company that went bankrupt and in October 1987 Meritor halts its dividend after announcing a third-quarter loss of $379.6 million. That same month the company also announced plans to sell some of its operations.<ref name="inky1" />
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