One of the nation's oldest mutual holding companies is planning a second-step conversion.
Liberty Savings Bank of Liberty, Mo., announced Thursday that it would sell its shares owned by its mutual holding company to the public and become a fully stock owned company.
Liberty president and chief executive Brent M. Giles said his company would use the proceeds from the stock sale to support deposit and loan growth, with a goal of increasing earnings. He added that the conversion would create a more liquid market for Liberty's stock and allow it to increase its stock-based compensation, which he said is important for retaining and attracting top employees.
The $238 million-asset Liberty, founded in 1955, was reorganized as a mutual holding company in 1993. The holding company owns 58.9% of its outstanding stock and the public owns the rest.
The thrift has five branches in the Kansas City, Mo., area and plans to open a sixth in the next 60 days, Mr. Giles said.
The Office of Thrift Supervision and the holders of at least two-thirds of its common stock must approve Liberty's conversion to a 100% stock-owned company. Mr. Giles said the approval process and subsequent stock sale should take several months and that he expects the conversion to be completed late in the second quarter or early in the third.
