Savi Financial in Mount Vernon, Wash., is planning a complicated process to form a de novo and become a multibank holding company.
The parent of the $494 million-asset SaviBank detailed its plan in an application with the Federal Deposit Insurance Corp. for deposit insurance for Orca Bank.
Savi plans to raise $1 million from Orca organizers and directors, selling about 91,000 shares at $11 each, and contribute another $14 million of capital as part of the reorganization process.
Orca would buy “substantially all of the business, assets, deposits and related liabilities” of an existing SaviBank branch in Bellingham, Wash. The application noted that “any low-quality assets” would not change hands.
The branch had $64.4 million of deposits in mid-2021, according to the FDIC.
Savi would then acquire Orca, exchanging its stock for that of the de novo. It would operate separately from SaviBank.
“The organizers believe that creating a separately chartered institution … offers opportunities to the company to enhance its banking services to its Whatcom County customers by operating Orca Bank as a separate community bank with its own local board of directors and management team, strategy and decision-making,” the application said.
Savi also believes the structure will increase its customer base, earnings and revenues around Whatcom County. Savi noted in the application that Orca will maintain a loan-loss allowance of 1% to 1.5% of outstanding loans.
Savi said it expects the new bank to open by Aug. 22.
Michal Cann, Savi’s chairman and president, would serve as Orca’s CEO. Andrew Wilkens would relinquish his title as SaviBank’s senior vice president to become Orca’s president.