Former CU Turned Bank Going to Straight Stock
Just as one former credit union turned bank issues its first stock, another has announced that it will abandon its previous mutual holding structure to become a fully stock issuing institution.
Dallas based Viewpoint Bank (formerly Community Credit Union) initially adopted a mutual holding company structure when it converted from a credit union charter in 2005. Under a mutual holding company structure, the bank is owned by a holding company that issues less than 50% of the company's available stock and is, in turn, controlled by the banks depositors in a mutual way.
By contrast, a straight stock issuing bank is owned by a holding company that issues stock. The straight stock structure allows non-depositors to own the bank by owning a majority of the holding company's stock. Now Viewpoint says it will move from a mutual holding company structure to a straight stock issuing structure.
"This is an exciting step in the continued growth of our company," said ViewPoint Bank President/CEO Gary Base. "While we're already well-capitalized and have grown tremendously since we first became a public company in 2006, the additional capital we can raise from this offering will allow us greater flexibility and increase our opportunities for future strategic growth."
, based OmniAmerican Bank, formerly OmniAmerican Credit Union, adopted the straight stock issuing structure for its initial public offering of stock on Jan. 21.