Bank of Princeton in New Jersey is looking to form a holding company.
The $1.7 billion-asset bank is asking shareholders to approve forming Princeton Bancorp at the 2022 annual meeting set for April 29.
Bank of Princeton said in a regulatory filing that the reorganization would give it “a greater ability” to raise Tier 1 capital, which would help it “to continue to grow at the rate we desire, including through acquisitions, and to better protect ourselves from losses in the future.”
The bank said having a holding company would give it more flexibility to pursue acquisitions “because it permits the ownership of separate subsidiaries with independent management.” Certain state and federal regulations also limit the types of businesses the bank can pursue without a holding company.
If approved, Bank of Princeton plans to reorganize in the third quarter.
Bank of Princeton agreed in May 2016 to sell to Investors Bancorp, but the proposed deal was terminated in early 2017 after Investors entered into an informal agreement with regulators tied to its Bank Secrecy Act and anti-money laundering compliance.
Investors recently was sold to Citizens Financial Group.