Former Coastway Credit Union Looking to Issue Stock: Report
A former credit union which converted to a mutual bank and then formed a mutual holding company is reportedly gearing up to issue stock.
According to the Providence Journal the bank, which had been the $304 million Coastway Credit Union until 2009, has decided to move from a mutual holding company structure which its depositors approved in 2012 to a publicly traded, stock-issuing bank.
Mutual banks which have a mutual holding company structure can also issue stock but in a more limited way and Coastway has not done that, and there have been reports the structure is becoming less popular due to regulatory changes.
According to the Rhode Island newspaper, the board of directors at Coastway Community Bank approved the move on Aug. 22.
The bank's depositors, the Federal Reserve Board and the Rhode Island Department of Business Regulation still have to approve the move. Assuming they do so, the bank expects to file paperwork for the stock sale with the Security and Exchange Commission in November and offer the shares in early 2014.