A North Carolina mutual thrift that last winter highlighted disagreements among regulators over stock conversions has taken another step toward becoming a publicly held commercial bank.
Perpetual Savings Bank of Lexington recently raised $4.7 million in two offerings - one to members of the thrift and the second to residents of the community.
Since regulators had required it to raise $6 million of capital, a third offering, to the general public, will begin next week to raise the final $1.3 million.
"The unique thing about this is that this is the first mutual to attempt to convert so quickly to a commercial bank," said Brian T. Atkinson, the $38 million-asset thrift's lawyer."
The thrift's progress to date has not come easily.
Perpetual's original plans last fall to convert to a stock thrift included a stock giveaway option to depositors that amounted to $1.1 million in cash or free shares. While the Federal Deposit Insurance Corp. did not object to the plan, the North Carolina Savings Institution Division rejected it.
Stephen E. Eubanks, commissioner of the division, said the giveaway plan would create a bad precedent by motivating influential depositors to persuade mutuals to convert for the depositors' benefit. Perpetual's amended plan last winter dropped the depositor payout.
Upon closing of the stock conversion, expected around mid-April, Perpetual will start the process of converting to a commercial bank, which it hopes will be completed by the second quarter. The thrift will become Perpetual State Bank.
