New Buffalo Savings Bank in Michigan has filed plans to convert from a mutual thrift to a stock-owned institution.
The $89 million-asset company said it will offer between 595,000 and 805,000 shares. New Buffalo may increase the offering to 925,750 shares, depending on demand and market conditions.
New Buffalo estimates that it will raise between $4.8 million and $6.9 million. The proposed holding company for New Buffalo intends to use the proceeds to fund an employee-stock-ownership plan and for other general corporate purposes. The bank intends to use its proceeds to withdraw from an employee-pension plan, to fund new lending and for other purposes.
New Buffalo reported full-year losses in both 2014 and 2013. The thrift attributed last year's loss to about $1 million in retirement payments to three former executives, and an increase in payments to the bank's pension plan.
New Buffalo operates three branches in southeastern Michigan, all located near the border town of Michigan City, Ind.
Keefe, Bruyette & Woods is financial adviser to New Buffalo on the conversion and Luse Gorman is legal adviser.