NEW YORK — ViewPoint Bank, formerly the Dallas-based Community Credit Union, had what may have been the best opening of any former credit union in history as the bank's stock closed up about 50% after its first day of trading. Community Credit Union became ViewPoint Bank on Jan. 1 and formed the ViewPoint Financial Group as part of the mutual holding company, which offered the stock. The stock is traded on the NASDAQ under the symbol VPFG.
According to a bank statement, the former CU has sold just over 11.6 million shares of stock. ViewPoint sold most of the 11.6 million shares to the bank's members, most of them former credit union members and roughly 200,000 shares to credit union directors and senior staff, according to the bank's prospectus filed with the Securities and Exchange Commission.
The mutual holding company structure held 55% of the stock while 45% was issued.
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Both general members and leaders at the former CU were able to purchase stock at $10 per share and no one person was allowed to purchase more than 40,000 shares (70,000 per couple).
The stock closed on the first day at $14.99 per share and, as of press time, was at $15.40.
The price increase is a boon for CU senior staff and directors. Based on the roughly 200,000 shares the group purchased, the run-up in the stock price has increased their collective wealth, on paper, by almost $1 million.
Gary Base, former CEO of Community Credit Union and currently CEO of the bank, committed to purchase 30,000 shares, according to filings with the SEC, making his increase just shy of $150,000. Mark Hord, general counsel for the CU and now bank, purchased 5,000 shares and has seen his stock rise in value by roughly $25,000.
A number of board members purchased a large volume of shares. They included James McCarley, 27,500 shares; Jack Ersman and Gary Basham, 25,000 shares each; Rosario Vela, 10,000 shares; Keith Sockwell, 16,000 shares; and Kenneth Yarbrough, 20,000 shares.
The former credit union reported about 3,500 depositors, or about 1.56% of the 223,000 members that the CU reported it had as of Sept. 30, 2005, subscribed to the IPO. Estimates from other former credit union IPOs have often put member participation in the range of between 5-8%.
In addition to the money generated in the first day of trading, directors and employees at the bank will benefit from a pool of roughly 2.2 million shares which the bank has committed to purchase to divide among an employees stock ownership plan (807,000 shares), restricted stock awards (404,000 shares) and stock options (just over one million shares). Based on the opening day's $4.99 per share rise, the initial $22 million available to employees and directors has become $33 million.
The actual establishment of the employee stock ownership plan will require a separate vote of shareholders and participation in the other stock plans will be subject to some OTS regulations.
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