GOING PUBLIC: William White, president and CEO of Coastway Bancorp, says that despite an IPO, the company doesn’t have any immediate expansion plans.
PBN FILE PHOTO/RUPERT WHITELEY
By Patricia Daddona PBN Staff Writer
Coastway Bankcorp Inc. became a publicly traded commodity on the Nasdaq stock exchange this year, retaining William A. White in the top position as president, director and CEO. Originally organized as a credit union in 1920 and converted to a community bank and mutual holding company in 2009, Coastway has nine local branches in Cranston, Providence, Warwick, East Providence, East Greenwich and Lincoln.
White has led Coastway and its predecessor, Warwick Credit Union, since 1994. According to White, deposits have grown 29 percent over the last three years, through Sept. 30, 2013, from $262 million to $338 million; loan portfolios have grown 23 percent, from $257 million to $318 million; capital on hand has grown 8.9 percent, from $25 million to $27.5 million. Assets have grown 23 percent, from $309 million to $380 million.
PBN: Coastway Bancorp Inc. has been publicly traded since Jan. 15. What is the most important advantage that going public has brought to Coastway so far?
WHITE: The additional capital to support additional growth. Basically, this will allow us to continue the successes we’ve had in both commercial and residential lending and continue to fill that need for a community bank.
PBN: How much has that additional capital amounted to?
WHITE: Gross proceeds from the offering were $48.3 million. We did OK. We’re allowed as a bank to leverage that capital. We’ll be using that as our basis to make additional loans.
PBN: Are there other advantages you are seeking or will seek to leverage through the IPO?
WHITE: No. Our plan basically calls for us to just use it to continue growth.
PBN: You have said the IPO was intended to raise more capital to meet the high demand for lending. How do you measure this high demand and what evidence do you have of it?
WHITE: If you go back and look at the numbers in the loan portfolio itself, in the three-year period from Dec. 30, 2010, it’s over $61 million [worth] of growth. To put those kinds of numbers on the books, you’ve got to have demand: in mortgage lending, first mortgages and in the commercial [area]. Demand comes from being available. We’ve got a good branch network. We’re out in the community making ourselves known. That results in demand coming in the door. We’ve certainly got the ability now and we did back then to meet that demand.