SAN DIEGO -- First National Corp. said its subsidiary, FN Financial Services Inc., has filed with the Securities and Exchange Commission a proposed initial public offering of 3.5 million shares of stock.
First National said that 600,000 of the common shares are being registered on behalf of FN Financial Services and 2.9 million on behalf of another subsidiary, First National Bank of San Diego, whoch has $600 million in assets.
The initial offering price is expected to be between $9 and $11 a share. Oppenheimer & Co. will act as managing underwriter.
FN Financial Services was formed recently to take over the mortgage banking business of First National Bank. Following the sale of the shares, FN Financial Services will no longer be affiliated with the bank.
First National Corp. had been saying for several quarters that it was considering the sale of its mortgage banking operations because regulatory restrictions limited their ability to grow.