The Bank Slate

INSIGHTS INTO THE BANKING INDUSTRY

Everett Co-operative in Mass. plans mutual conversion

Everett Co-operative Bank in Massachusetts is planning to convert from a mutual to a stock-owned company.

The $733 million-asset mutual recently filed an application with the Federal Reserve tied to the planned conversion. It would operate as a unit of ECB Bancorp.

ECB said in a prospectus that it plans to sell 7.9 million to 12.2 million shares of common stock. Net proceeds would likely range from $76.4 million to $119.7 million.

ECB said that half of the net proceeds will be invested in its bank, while 8.4% will be loaned to its employee stock ownership plan. About 41% of the net proceeds will remain at the holding company.

ECB said it will contribute $600,00 in cash and 260,000 shares of common stock to a charitable foundation it plans to form in connection with the conversion.

Keefe, Bruyette & Woods will serve as the sole manager for the offering. 

Everett Co-operative earned $4 million in 2021.

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