Alamogordo Financial in New Mexico has kicked into gear its plans to convert from a mutual to a fully shareholder-owned company.

Nearly 55% of Alamogordo Financial is owned by a mutual holding company, and the rest is publicly traded. Alamogordo Financial is the parent company of Bank 34, which had assets of $279.2 million at March 31.

Under a transaction announced Monday, a newly created entity called Bancorp 34 would sell between 1.2 million and 1.9 million shares of common stock at $10 each. Those shares would represent the 54.7% of Alamogordo Financial that is not currently traded publicly.

The offering is expected to raise $12 million to $18million.

Meanwhile, each existing share of common stock in Alamogordo Financial held by public stockholders would be exchanged for 1.3158 to 2.0473 shares of Bancorp 34. The final exchange ratio would preserve public shareholders' aggregate ownership stake, according to a news release that detailed the planned transaction.

Bancorp 34 would become Bank 34's new holding company and would be wholly owned by public shareholders.

Depositors and certain borrowers of Bank 34 will be eligible to purchase shares in a subscription offering. Any subscription-based shares not purchased may be sold in a community offering to the general public that includes the company's stockholders. The subscription and community offerings are expected to close Sept. 8.

The conversion and offering are dependent on several factors, including approvals from regulators, depositors and certain borrowers of Bank 34, and Alamogordo's shareholders.

Keefe, Bruyette & Woods assisted the company with the offering.

Alamogordo Financial in March announced its plans to convert from a mutual to a fully stock-owned bank holding company, but it didn't disclose the amount it expected to raise or the number of shares it planned to sell in the offering.

Established in 1934 as Alamogordo Federal Savings and Loan Association, the company completed a partial mutual conversion in 1997. 

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