First Savings Bank of Bayonne, N.J., has completed its reorganization into a mutual holding company, Bayonne Bankshares M.H.C.

The conversion was originally scheduled a few months ago, but plunging equity prices and regulatory hangups delayed this week's Nasdaq listing. As a result, the company's valuation plunged 27% from the original estimate.

First Savings said the 3,017,500 shares outstanding reflect the final independent valuation of $30.175 million as of Dec. 30.

First Savings said the 1,358,015 shares sold in the offering are a 45% minority interest. On Monday, the stock - listed under the symbol FSNJ - rose $1 to $11.

The remaining 1,659,485 outstanding shares were issued to the holding company.

First Savings said it realized gross proceeds of $13.58 million from the offering, which will further strengthen its capital base and will support investment and lending activities.

Ryan, Beck & Co. managed the offering.

A mutual holding company is a cross between a publicly held and a mutual thrift. A holding company is chartered that controls the majority of the thrift's stock, while the remainder is issued to the public.

There are roughly 40 mutual holding companies in the United States, most chartered in the last two years.

Last month, Clayton County Federal Savings and Loan Association, Jonesboro, Ga., applied to the Office of Thrift Supervision to change from a mutual savings company into a mutual holding company.

Clayton has $68 million of assets, and like most mutual holding companies, was fearful of raising too much equity through a full conversion.

The thrift expects to raise $1.5 million to $3 million through the offering, but a full conversion would have raised up to $7 million.

With so much capital, shareholder returns would have been low, and the pressure to sell would be great, the company said.

Instead, the new holding company, CCF Mutual Holding Co., will control between 78.6% and 57.1% of the 700,000 outstanding shares.

Trident Securities Inc. will manage the offering.

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