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.

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