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Delanco Federal Savings Bank in New Jersey must fix asset-quality, risk management and other problems under a written agreement with the Office of the Comptroller of the Currency.
December 24
Delanco Bancorp in N.J. (DLNO) is taking steps to convert to a fully public company.
The $130 million-asset parent of Delanco Federal Savings Bank said Wednesday it would reorganize itself from a mutual holding company structure via the sale of stock in a new company to be formed in connection with the conversion.
Delanco will sell shares of common stock that represent the mutual holding company's 55% stake through a public offering that is expected to take place in the third quarter. Eligible depositors as of April 30 will be the first to be able to buy shares, according to Delanco.
Delanco's thinly traded shares soared on news of the conversion, climbing nearly 10% by midday Wednesday, to $4.
Shareholders of Delanco other than the mutual holding company would receive shares of the new holding company under an exchange ratio that would preserve their current ownership stake.
Delanco converted to a mutual holding company from a mutual savings bank in 2002. The bank has two branches in Burlington County.
