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."
Plano
, Texas
, based OmniAmerican Bank, formerly OmniAmerican Credit Union, adopted the straight stock issuing structure for its initial public offering of stock on Jan. 21.
