The Bank Slate

INSIGHTS INTO THE BANKING INDUSTRY

ECB in Mass. raises purchase limits for mutual conversion

ECB Bancorp in Everett, Mass., is letting investors buy more shares of its stock as part of its mutual-to-stock conversion. 


The $733 million-asset ECB said in a press release Tuesday that the maximum purchase limitation for individual investors was increased from 35,000 shares to 55,000 shares. 

The limit for a collective of purchasers was raised from 50,000 shares to 70,000 shares. 

Completion of the conversion of Everett Co-operative Bank, and the stock offering, remains subject to selling roughly 7.9 million shares of the company‚Äôs stock. 

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

Half of the net proceeds will be invested in ECB’s 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 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.

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