A Big Moment For A Rapidly Growing Institution
By Josh Resnek
With approximately $700 million in assets, thousands of happy depositors, mortgage customers and small business relationships, commensurate with commercial and real estate growth in the city, the Everett Cooperative Bank, Everett Bank, is going public.
If depositors approve the plan at a special meeting on May 5, millions of dollars of additional capital will be raised with the sale of stock that will be traded and a new company will be formed. The capital raised will enable Everett Bank to continue to grow in increasingly competitive marketplace.
Initially, ECB Bancorp, Inc. will sell shares to eligible depositors of the bank as of December 31, 2020. ECB Bancorp will also be establishing and funding a charitable foundation to be named, Everett Co-operative Bank Charitable Foundation, Inc.
In both instances, the bank is positioning itself to continue to have an important place in the future economic development of the city as well as to provide a rock solid depository for those who use the bank as well as for those who will own its stock.
Bank President Richard O’Neil will be given a 3 year contract to remain at the helm.
O’Neil’s leadership under the direction and guidance of an experienced Board of Directors has led to the bank’s local pre-eminence and growth.
In the recently released Plan of Conversion and informational packet Chairman of the Board Dennis Leonard was quoted: “Our continued success depends to a significant degree on the skills and competence of Mr. O’Neil. The employment agreement is intended to ensure that we maintain a stable management base following the proposed conversion”. John Citrano, Executive Vice-president of the bank and Chief Operating Officer and John Migliozzi, Chief Commercial Lending Officer, have also received commitments from the Board of Directors to remain with the Bank.In all 3 instances, this allows for continuity of leadership and stability as the bank continues its growth trajectory.
The prospectus reveals that employees with more than 1,000 hours of employment with the bank will become part of an employee stock ownership plan.
The bank’s conversion also provides for the creation of a foundation to have total assets of $3,200,000 and to be used for contributions to community charitable organizations.
The stock in the new bank corporation will be issued to depositors who choose to participate in the offering at $10 a share.
Individuals may purchase a maximum of 35,000 shares at a cost of $350,000.
Group maximum purchase limit is 50,000 shares at $500,000.
On Thursday May 5, a special meeting of the depositors will be held at the bank headquarters, 419 Broadway, where depositors will be allowed to cast their votes from 9:00 a.m. until 6:30 p.m.
The Board of Directors believes the stock conversion plan will provide access to additional resources to expand the products and services the bank offers to its customers and will enable the bank to take advantage of business opportunities that may not otherwise be available, while at the same time remaining an independent community bank.
Depositors are urged by the Board to vote for the Plan of Conversion.
The conversion ultimately depends on and is subject to regulatory approval by the State Banking Commission.