January 15, 2008
Auburn Savings plans conversion
Auburn Savings Bank yesterday announced plans to convert from a mutual savings bank to a capital stock savings bank.
The plan would alter the structure of the bank, which currently is owned by its depositors. As a stock savings bank, Auburn Savings would still be majority owned by depositors, but the rest of the stock would be publicly owned. Though Auburn Savings President Allen Sterling declined to comment, citing Security and Exchange Commission restrictions, banks often undergo such a conversion to raise capital through the sale of its stock.
The bank, which as of September had $63 million in assets and $45 million in deposits, needs approval from the federal Office of Thrift Supervision before its members vote on the conversion. No date has been set for that vote.
The plan would alter the structure of the bank, which currently is owned by its depositors. As a stock savings bank, Auburn Savings would still be majority owned by depositors, but the rest of the stock would be publicly owned. Though Auburn Savings President Allen Sterling declined to comment, citing Security and Exchange Commission restrictions, banks often undergo such a conversion to raise capital through the sale of its stock.
The bank, which as of September had $63 million in assets and $45 million in deposits, needs approval from the federal Office of Thrift Supervision before its members vote on the conversion. No date has been set for that vote.
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