First Federal Bank of Kansas City in Lee’s Summit, Mo., formed a mutual holding company.
The $960 million-asset mutual said in a press release that it created Cosperity Bancorp. First Federal is now a Missouri stock savings bank wholly owned by the MHC.
“We have been innovators since our founding in 1934 and that spirit drives us still today,” J.R. Buckner, the mutual’s president and CEO, said in the release. “We believe this structure will provide us with greater flexibility to grow and diversify into other financial service activities that will benefit our customers while preserving our institution’s historical commitment to mutuality.”
The MHC also offers a path to facilitate future mergers or acquisitions, as well as providing access to new funding sources by allowing Cosperity to raise capital without going public.