The Bank Slate


Somerset Savings in N.J. lining up conversion

Somerset Savings Bank in Bound Brook, N.J., plans to raise up to $111 million as part of its plans to convert from a mutual to a fully-stock owned company.

The $649.5 million-asset bank disclosed in a regulatory filing that SR Bancorp, a newly formed holding company, plans to sell 8.5 million to 11.5 million shares of stock.

The offering should net proceeds of $81.7 million to $111.4 million, though it could increase to $128.4 million if there is enough investor demand.

A prospectus is expected to be issued in May.

The conversion is part of Somerset’s plan to buy Regal Bancorp.

The bank said proceeds will be used to pay the merger consideration to shareholders of Regal Bancorp.

Any remaining proceeds may initially be invested in short-term liquid investments with longer-term uses that could include investment in securities, dividends and repurchases.

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