Harbor One takes advantage of tax reform

With an eye toward growth, HarborOne Bank is reorganizing into a mutual holding company and offering a partial IPO.

In a regulatory filing outlining the plan, the company said that “the holding company structure will create various business opportunities for [the bank] that are not currently available to it as a mutual cooperative bank.”

For instance, HarborOne could more easily acquire either mutual or stock institutions and it could make investments prohibited to banks without a holding company.

According to documents filed with the Securities and Exchange Commission, HarborOne will offer up to 49.9 percent of its common stock, or 11.7 million shares, for sale starting at $10 per share, and it anticipates it will raise between $83.6 million and $114.1 million, it said in the filing.

HarborOne said it intends to fund a charitable foundation with part of the proceeds and that it may use some of the proceeds retained by the holding company to repurchase its own stock or finance potential expansions or acquisitions, though it noted it does not currently have any such plans.

HarborOne also expressed a desire for growth when it first pursued conversion to a bank charter back in 2012. At that time, it had $1.9 billion in assets and was one of the largest credit unions in New England. It wound down 2015 with $2.16 billion in assets.

“This partial offering will support further growth of HarborOne and place the bank in the best position to respond to the needs of the community,” President and CEO James W. Blake told Banker & Tradesman by email. “In addition to adding branches and exploring strategic initiatives, we will be establishing a charitable foundation to expand our already strong engagement with and support of community-based programs and causes. This offering creates long-term stability for HarborOne Bank and ensures local control. We are proud to be a Brockton-based company, and we look forward to building on our local roots and providing excellent service to even more customers.”

HarborOne Plans Reorganization, Partial IPO

by Laura Alix time to read: 1 min