Depositors at Coastway Community Bank, a $310 million bank in Cranston, R.I.,that used to be Coastway Community Credit Union, have approved thebank's formation of a mutual holding company.

The bank announced that 94% of more than 2,000 depositors hadvoted in favor of the mutual holding company structure. In thatstructure, the organization founds and charters a mutual holdingcompany that an elected board of directors controls and which ownsthe bank as a subsidiary.

The structure is a way a mutual bank can retain its ownership bydepositors and still issue stock. The mutual holding company willusually offer a minority stock position to investors whileretaining control over the institution through a majority stockposition.

A media contact for the bank would not comment on any plans toissue stock and the bank did not mention any when reporting thestructure change.

“For 92 years, Coastway's top priority has been to serve ourdepositors, to make our local economy stronger and to serve ourcommunity,” said Bill White, CEO of Coastway. “We are deeplygratified by this vote of confidence in Coastway's future, and inthe team we have in place here.

“The formation of a mutual holding company will give us thecapacity to further expand the financial products and servicesCoastway offers, expand our capital base and establishrelationships with other banks and financial service providers,”White said.

“The move will also allow us to maintain our independence, ouridentity, our proud history, our local and long-term focus, and –most importantly – our mutual ownership structure,” he added. Whitehad been CEO of the credit union when it converted charters and,should the mutual holding company issue stock, he will likely beamong he largest initial investors.

Coastway credit union members voted in favor of the charter change in 2009 and the bankreported that since that time Coastway increased its business loansby 58%, from $71 million to $112 million; made more than 1,800residential mortgage loans totaling $357 million; wrote 270commercial loans, totaling $91 million, for local businesses andincreased its total assets by 11%.

“We believe the formation of a mutual holding company is thenext logical step in Coastway's evolution as a strong, vibrantfinancial institution that serves its depositors and itscommunity,” White added. “We are confident this will be anothermilestone in our pursuit of our paramount business goal – to helpour members become more successful.”