BROCKTON, Mass.–A former credit union that converted to a mutual bank charter has announced plans to convert further to a public stock holding company.
The former Harbor One Credit Union converted to a bank charter in 2012, saying as a credit union it could not expand into additional markets. Now, HarborOne Bancorp, Inc., the holding company for HarborOne Bank, said it has adopted a plan of conversion pursuant to which it will reorganize into a fully public stock holding company structure and will conduct a second-step stock offering of new shares of common stock.
As part of the conversion, the company said in a statement, the bank will become a wholly-owned subsidiary of a new holding company, which will also be named HarborOne Bancorp, Inc. Shares of Company common stock held by persons other than the holding company will be converted into shares of common stock of the new holding company pursuant to an exchange ratio designed to preserve the approximate percentage ownership interests of such persons, excluding any shares purchased in the stock offering and receipt of cash in lieu of fractional shares.
The plan of conversion said shares of company common stock owned by the holding company will be canceled and the amount of the holding company’s ownership interest in the company will be sold through the second-step stock offering. In the stock offering, depositors of the bank and former depositors of Coastway Community Bank, which was recently acquired by the bank, with qualifying deposits as of Feb. 28, 2018, will have first priority to purchase the new shares of common stock.
The bank has $3.7-billion in assets.