Massachusetts now has another stock bank after Everett Bank converted from a mutual cooperative bank yesterday, raising $89.2 million in its initial public offering.
Everett Bank said in a statement Tuesday that it had received the necessary regulatory approvals to complete the conversion from a mutual to a stock bank. The bank completed the initial public offering after the market closed yesterday.
The bank’s new parent company is called ECB Bancorp Inc., and ECB Bancorp’s stock begins trading today on the Nasdaq Capital Market under the symbol ECBK.
The bank said in a statement yesterday that it sold 8,915,247 shares of common stock at a price of $10 per share in the initial public offering. About 8 percent of the shares were sold to Everett Bank’s employee stock ownership plan.
Everett Bank had to extend its subscription offering for two weeks in June after preliminary results showed that the bank had not sold enough shares to complete the IPO. The bank had set the minimum share offering at about 7.86 million shares, with a maximum of approximately 12.23 million shares. Everett Bank in its prospectus had targeted around 10.63 million shares for the subscription offering.
While falling short of the midpoint target, the bank raised $89.2 million in gross proceeds from the IPO.
Everett Bank had applied with regulators to convert to a stock bank in March. In its prospectus, the bank said it wanted access to additional resources to expand products and services and to use the capital raised in the offering to take advantage of business opportunities that might not otherwise be available to the bank.
The $688 million-asset Everett Bank is the first Massachusetts-based bank to fully convert to a stock bank since Eastern Bank’s conversion in October 2020. Another bank, Quincy-based Colonial Federal Savings Bank, did a partial stock conversion earlier this year.