With preliminary results showing that Everett Bank has not sold enough shares to complete its initial public offering, the bank has extended the deadline for purchasing shares and adjusted the maximum purchase limits for some prospective shareholders.
Everett Bank, a $688 million-asset mutual cooperative bank, said in a prospectus supplement filed with the SEC yesterday that the deadline for purchasing shares had been extended until June 29. The subscription offering had initially closed on June 15.
The bank must sell at least 7,862,500 shares at $10 per share to complete its initial public offering and convert from a mutual to a stock bank. The bank had set the purchase range between 7,862,500 and 10,637,500 shares, with 12,233,125 as the maximum number of shares that would be available.
With preliminary results showing that the bank had not yet received and accepted enough orders to reach the minimum, the June 21 SEC filing said, Everett Bank increased its maximum purchase amounts.
The previous maximum limits were 35,000 shares purchased with $350,000 for an individual and 50,000 shares at $500,000 for purchasers acting with others, including certain households, associations, companies and other entities. The new limits are 55,000 shares for individuals and 70,000 shares for group purchasers.
Not everyone will be eligible for these new limits. Only prospective shareholders who had already purchased the maximum amounts will be eligible for the new limits, the filing said.
In addition to selling enough shares, the initial public offering and conversion to a stock bank still need final regulatory approval, the filing said.
Everett Bank had applied with regulators to convert to a stock bank in March. In its prospectus, the bank said it wanted access to additional resources to expand its products and services. Everett Bank also said it would use the capital raised in the offering to take advantage of business opportunities that might not otherwise be available.
The bank said it plans to increase its commercial real estate lending, including offering larger loans and holding those loans on its balance sheet.
“As we continue to enhance our commercial real estate team and infrastructure and with the increase in capital resulting from the conversion, we will be able to selectively retain larger loans that we historically would have originated for participation with other local institutions,” the prospectus said.
Half the money raised in the initial public offering will be put into Everett Bank, according to the prospectus. The bank has two branches in Everett and Lynnfield.
If the bank completes an initial public offering, its proposed parent company, ECB Bancorp Inc., would be listed on the Nasdaq Capital Market under the symbol ECBK.
