Feb. 14--State and federal regulators have approved plans by Home Savings Bank to create a holding company, Home Bancorp Wisconsin, and sell stock in the more than century-old Madison financial institution.
More than seven months after the bank submitted its application, approval came on Tuesday, said Jim Bradley, Home Savings CEO. "We're excited about it. We're looking forward to the next phase," he said.
Home Savings Bank, founded in 1895, plans to transform from a mutual savings bank to a stock-based savings bank. The new holding company, Home Bancorp, plans to sell up to 1,163,800 shares at $10 a share, providing net proceeds of $6.2 million to $10.4 million, depending on the number of shares sold.
An additional 270,922 shares would be available, at $10 each, to employees participating in the bank's 401(k) retirement plan.
"It gives us additional capital to support future growth," Bradley said, "and it provides flexibility in the current market environment."
Shares will be sold on the over-the-counter bulletin board under the symbol HBWI. But the general public won't be able to participate for a while.
The bank company is finalizing a prospectus that will be mailed by late next week. Those with at least $50 of deposits in Home Savings as of Sept. 30, 2011, will get the first crack at buying stock and will have about one month to subscribe.
Employees and other customers will be next in line, followed by Dane County residents before the stock will be available to the general public. Bradley said it is too soon to tell when that might occur.
Home Savings Bank has three locations in Madison and one in Stoughton. The bank had $115.2 million in assets as of Sept. 30, according to an amended registration application filed in late December.
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