The former Rhode Island credit union, which converted to the $357 million Coastway Community Bank in 2009, is moving ahead with forming a mutual holding company, raising speculation it might eventually lead to a stock structure.
Touting its newfound loan success, the president/CEO of the Cranston bank, William White, said a holding company format would permit the bank to greatly expand its statewide financial base.
In a notice filed with state and federal regulators, White said that the conversion from Coastway Credit Union has been a huge success and that the switch represents “an overwhelming vote of confidence” in management’s decision to make the change.
“Since the conversion, business loans have increased by 58%, from $71 million to $112 million,” he wrote. “We’ve written 1,800 mortgages totaling $357 million, 270 commercial loans for local business totaling $91 million and assets, capital and savings have increased by 11%.”
Depositors will vote on the proposed holding company formation at an April 30 meeting in Warwick, according to an April 3 letter from White sent to customers and posted online. In a statement distributed to Providence media, the bank said it has filed its holding company application with the Federal Reserve Board, the FDIC and the Rhode Island Department of Business Regulation.