Former Credit Union Executives Do Very Well in Stock Offering
NEW YORK - Executives and board members for Rainier Pacific Bank, the former Rainier Pacific Credit Union, have done very well in the former credit union's initial public offering. The data from October 21 trading shows shares of Rainier Pacific Financial Group, which is the stock issuing holding company for the bank, closed at $16.99 per share. The institution's public offering offered the stock first to former members who had accounts on record with the credit union as of December 31 2000, its last day as a credit union, at $10.00 per share. Bank executives and board members also were offered stock at that price, but under the same limits on the amounts of shares they could purchase as everyone else. According to filings with the Securities and Exchange Commission associated with the offering, executives and board members committed to purchasing at least 550,000 shares of the stock, or $5.5 million. The move to $16.99 netted the executives at least $3.8 million, collectively. Individually the offering limited any single person, including executives and board members, to purchasing 25,000 or 50,000 shares per couple. Individuals who purchased the entire 25,000 allowed made roughly $174,000 in the first day of trading. Couples who purchased 50,000 shares made roughly $348,000.