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By Michael Souza
PBN Staff Writer
CRANSTON – Coastway Community Bank submitted a notice of intent to its regulators seeking approval to form a depositor-governed mutual holding company.
The company would be a separate legal entity that owns and controls Coastway Community Bank as a subsidiary, the bank announced Wednesday.
“For 91 years, Coastway’s top priority has been to serve our depositors, to make our local economy stronger and to serve our community,” said William White, president and CEO of Coastway. “The plan to form a mutual holding company, which was unanimously approved by our board, will help us continue to achieve that goal.”
Depositors will vote on the plan later this month. If approved, the reorganization is subject to approvals by the Federal Reserve Board, the Federal Deposit Insurance Corporation and the Rhode Island Department of Business Regulation.
“This plan will give us the capacity to further expand the financial products and services Coastway offers, expand our capital base and establish relationships with other banks and financial service providers,” White said.
“The move will also allow us to maintain our independence, our identity, our proud history, our local and long-term focus, and - most importantly - our mutual ownership structure,” he added.
In 2009, depositors overwhelmingly approved a proposal by Coastway to convert from a credit union to a member-governed, federally insured mutual savings bank.
Since the conversion Coastway’s business loans have increased by 58 percent, and their assets, capital and savings have increased by 11 percent.
“We believe the formation of a mutual holding company is the next logical step in Coastway’s evolution as a strong, vibrant financial institution that serves its depositors and the community,” White added. “We are confident this will be another milestone in our pursuit of our paramount business goal - to help our members become more successful.”
A mutual holding company is a depositor-governed financial institution organized to act as the holding company for a mutual bank, like Coastway.
The mutual holding company will be a Rhode Island corporation.