Mt. Washington Savings Bank in Cincinnati is planning to convert from a mutual savings and loan association to a company partly owned by public shareholders.
The $89 million-asset bank said in a press release Tuesday that the mutual-to-stock conversion is expected to be completed by yearend.
A new state-chartered corporation will be formed as the holding company for Mt. Washington Savings Bank. The newly formed corporation will sell an undisclosed number of shares of common stock to the bank's depositors and other parties through "a subscription and community offering," according to the release.
Depositors as of June 30, 2013, are entitled to receive "nontransferable subscription rights to purchase common stock," according to the release. The sale will start after the company files a prospectus request with regulators.
The capital raised from the transaction "will better position us to take advantage of growth opportunities in the future," Chief Executive Gregory Niesen said in the release.
A number of mutuals have converted in recent years, but depositors' rejection of a proposal by Beverly Bank in Beverly, Mass., to switch to a wholly stock-owned bank have raised questions whether conversion plans will meet more resistance than in the past.