The Bank Slate


BayVanguard converting to fully stock-owned company

BayVanguard Bank in Baltimore plans to raise up to $141 million as part of its plans to convert from a mutual to a fully-stock owned company.

The $845 million-asset bank disclosed in a regulatory filing that BV Financial, a newly formed holding company, plans to sell 10.6 million to 14.4 million shares of stock.

The offering should net proceeds of $103.8 million to $141 million, though it could increase to $162.4 million if there is enough investor demand.

A prospectus is expected to be issued in May.

BV Financial plans to contribute at least half of the net proceeds BayVanguard Bank. A portion of the proceeds will be used to fund a loan to the ESOP to finance its purchase of common stock in the offering. The company may use a portion of the proceeds to redeem $3 million of junior subordinated debt.

The company said it could also use some of the funds to invest in securities, repurchase stock, buy other financial institutions or pay dividends.

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