Hanover Bancorp is taking steps to let Castle Creek Capital Partners boost its stake in the Mineola, N.Y., company to 9.9%.
The $2.3 billion-asset company disclosed in a regulatory filing that it entered into an exchange agreement with Castle Creek to let the investor exchange 125,000 shares of voting common stock for 125,000 shares of Series A preferred stock.
Hanover also filed the documents necessary to increase its authorized Series A preferred stock from 150,000 shares to 450,00 shares.
Castle Creek can appoint someone to Hanover’s board, along with a board observer, as long as its stake stays at or above 4.9%.