Needham Bank in Needham, Mass., is planning a standard conversion to become a fully stock-owned company.
The $3.7 billion-asset bank disclosed in a regulatory filing that NB Bancorp, a newly formed corporation, plans to sell 34.5 million shares of stock at $10 each – for gross proceeds of $34.5 million.
The company should raise up to $39.7 million if there is enough demand.
Directors, executive officers and their associates are expected to buy about 706,000 of the shares.
NB Bancorp plans to use some of the proceeds to fund a loan to its ESOP. About half of the proceeds will go to Needham Bank, which will be used for a variety of purposes, including dividends, stock buybacks, and investment in securities.
The company has added about 137 full-time employees since 2020, including 23 people tied to the April 2022 purchase of a cannabis banking business from Eastern Bank.
Piper Sandler is handling the offering.