CRANSTON, R.I. – Coastway Community Bank, a 91-year-old institution known until 2009 as Coastway CU, has applied to regulators to form a mutual holding company, which would facilitate a move to stock ownership.
The holding company would be a separate legal entity that owns and controls Coastway Community Bank as a subsidiary, the bank announced Wednesday.
“For 91 years, Coastway’s top priority has been to serve our depositors, to make our local economy stronger and to serve our community,” said William White, president of Coastway. “The plan to form a mutual holding company, which was unanimously approved by our board, will help us continue to achieve that goal.”
Depositors will vote on the plan later this month. If approved, the reorganization is subject to approvals by the Federal Reserve Board, the Federal Deposit Insurance Corporation and the Rhode Island Department of Business Regulation.
“This plan will give us the capacity to further expand the financial products and services Coastway offers, expand our capital base, and establish relationships with other banks and financial service providers,” White said.
Since the conversion, Coastway’s business loans have increased by 58%, and its assets, capital and savings have increased by 11%, according to the credit union convert.
