Guilford Savings Bank's board of trustees approved a plan to reorganize the bank from a mutual form of organization to a stock form, according to its website.
The Guilford, Conn.-based community bank will become a subsidiary of GSB Bancorp Inc., which will then be owned by GSB Mutual Holding Co. under the reorganization plan.
The board of trustees said the plan will allow access to capital markets, such as the mid-tier holding company issuing debt instruments for example, and allow acquisitions of other mutual banks and operate them as separate entities under the mutual holding company, among other things.
According to a letter to depositors from President and CEO Timothy Geelan, the planned reorganization does not involve the sale of common stock and the bank does not intend to issue any stock now or in the future or any plans to go public.
The bank's depositors have until Nov. 3 to vote on the proposed reorganization plan. In addition, the reorganization requires the approval of various regulatory authorities, including the Connecticut Department of Banking, the Federal Deposit Insurance Corporation and the Federal Reserve Bank.
