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Another US bank to reorganise structure via IPO
Posted on Wednesday, 13 March 2019 11:04
Pioneer Savings Bank is reorganising from a mutual savings structure into a two-tier mutual holding company (MHC) via an initial public offering of shares in a newly-established parent, Pioneer Bancorp, on Nasdaq.
Ultimately, the decision to convert to a MHC model is expected to: help the lender remain an independent community bank; increase capital to fund future growth and profitability; and enable it to expand organically.
In addition, money raised should bankroll mergers and acquisitions – by either purchasing new branches, other financial institutions or related services companies
The listing comprises the sale of up to 9.71 million stocks as USD 10.00 apiece on a best efforts basis as part of the decision to restructure.
Pioneer noted that while Pioneer Bancorp could change from a mutual to a stock form of ownership in the future via a second-step conversion, no such plans are currently under discussion.
Founded in 1889, the chartered savings bank operates 22 retail offices in Albany, Rensselaer, Saratoga, Greene, Schenectady and Warren Counties in New York.
Pioneer attracts deposits from the general public and municipalities and uses those funds, along with advances from the Federal Home Loan Bank of New York and money generated from operations, to originate loans.
At 31st December 2018, the savings bank had consolidated total assets of USD 1.30 billion, total deposits of USD 1.10 billion and net worth of USD 126.40 million.
Pioneer also had return on average assets of 1.4 per cent, return on average equity of 15.5 per cent and an efficiency ratio of 60.0 per cent, at the end of 2018.
In terms of capital ratios, the lender had average equity to average assets of 9.4 per cent, total capital to risk weighted assets of 13.3 per cent and tier 1 capital to average assets of 9.7 per cent.
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