Sound Financial Inc. in Seattle is planning to take the second step to convert from a mutual holding company to an entirely stock one.
The $339.4 million-asset company said Monday that it will absorb Sound Community MHC as part of the reorganization. Sound Financial will complete a second-step stock offering of common shares for a new state-charted corporation formed as part of the conversion.
Sound Community MHC's 55% of outstanding common stock will be retired and the new holding company will sell common stock totaling this ownership percentage.
The common stock will first be sold to depositors with qualifying deposits as of Dec. 31, 2010, while the general public also will be able to buy shares. Existing shareholders will receive shares of the new holding company pursuant to an exchange ratio. The offering is expected to happen during the second quarter.
Sound Financial is the holding company for Sound Community Bank, a federal savings bank.
