-
Mutual-to-stock conversions are facing new hurdles, as evidenced by events at a pair of Massachusetts mutuals. Depositors at Beverly Bank recently rejected its proposed conversion, while Reading Co-op Bank changed its bylaws to make it more difficult to convert.
August 19 - WIB PH
One thing that really gets Julieann Thurlow riled up is mutual thrifts converting to stock companies.
September 22 -
MSB Financial Corp., a mutual thrift firm in Millington, N.J., plans to reorganize into a fully stock-owned company.
November 17
Depositors at Reading Co-operative in Reading, Mass., approved a plan to make it more difficult for the thrift to convert to a public stock company.
Depositors at the $448 million-asset depositor-owned thrift backed the corporate bylaw change Tuesday by a vote of 72-3, Julieann Thurlow, Reading's president and chief executive, said Wednesday.
The
"Mutual banks just aren't being formed today," Thurlow said. "Every time there's a conversion, there are less of us. We've taken the position that we want to slow that progression."
Mutual conversions have increased in recent years, as thrifts often under pressure from investors have looked to raise capital by offering stock.
The $17.8 billion-asset
But the push among thrifts to change their corporate structure has met resistance in Massachusetts, where depositors have recently fought to preserve mutuals' distinctive culture.
In August, depositors at the $343 million-asset
Reading depositors backed the bylaw change by a wide margin, though a handful of members said they wanted the opportunity to buy stock, Thurlow said.
"It was a celebratory event," she said, adding that she hopes the vote offers encouragement to other thrifts.