Comprehensive M&A data with integrated detailed company information

HarborOne to convert from mutual
Posted on Tuesday, 12 March 2019 14:43
Three financial institutions in the US have filed S-1 paperwork with the Securities and Exchange Commission for a public offering as part of plans to convert from a mutual to a stock form of organisation.

HarborOne Mutual Bancshares is one such entity cancelling existing scrips in exchange for shares in a newly-formed holding corporation, namely HarborOne NorthEast Bancorp (New HarborOne).

First Bank Richmond and Eureka Homestead are the other two mutuals seeking to reorganise, under Richmond Mutual Bancorporation and Eureka Homestead Bancorp, respectively.

All three cite an enhanced capital position to support future growth and profitability as one of the reasons behind the conversions and the public offerings.

HarborOne is the largest of the three in terms of assets, with USD 3.65 billion, as at 31st December 2018 (31st December 2017: USD 2.68 billion; 31st December 2016: USD 2.45 billion).

At the end of 2018, it also had deposits of USD 2.69 billion (31st December 2017: USD 2.01 billion) and stockholders' equity of USD 357.60 million (31st December 2017: USD 343.48 million).

New HarborOne will offer 22.95 million to 31.05 million shares at USD 10.00 apiece for gross proceeds of USD 229.50 million to USD 310.50 million.

Upon completion of the conversion, this newly-formed Massachusetts-incorporated holding company will own 100.0 per cent of the common stock of HarborOne Bank.

It will also succeed all of the business and operations of HarborOne Bancorp (Old HarborOne), being an existing entity formed in 2016 as part of a reorganisation of HarborOne Bank into the two-tier mutual holding company.

The shares being offered by New HarborOne represent about 53.0 per cent of Old HarborOne, which is currently owned by HarborOne Mutual Bancshares.

When the conversion is completed, both of these entities will cease to exist and the newly-formed holding company will become the successor corporation and change its name to HarborOne Bancorp.

© Zephus Ltd