PCSB Bank will convert from a mutual savings bank to a stock savings bank, the company in Yorktown Heights announced today.
Bank officials said its board of trustees has unanimously approved a conversion plan that makes the state-chartered PCSB Bank a wholly owned subsidiary of a new bank holding corporation, PCSB Financial Corp.
The new company will offer shares of common stock for sale to eligible depositors of PCSB Bank and other persons in a nontransferable subscription offering. PCSB officials said the amount of common stock to be offered for sale will be determined by an independent appraisal. Any shares of common stock still unsold after the completion of the subscription offering may be sold in a community offering, syndicated community offering or a firm commitment offering.
With the conversion, said PCSB officials, a charitable foundation will be established that is funded with shares of common stock of PCSB Financial Corp. and cash. It will be dedicated to supporting charitable causes and community development activities in the communities in which PCSB Bank operates.
Founded in 1871 in Brewster as Putnam County Savings Bank, the mutual savings institution in 2015 changed its name and relocated its headquarters to Northern Westchester Executive Park in Yorktown Heights following its $25.4 million acquisition of CMS Bancorp Inc. in White Plains and entry into the Westchester market. PCSB operates 15 branch offices in Dutchess, Putnam, Rockland and Westchester counties.
As of Sept. 30, the bank reported consolidated total assets of $1.3 billion, total deposits of $1.1 billion and total equity of $111.5 million.
The conversion plan is subject to regulatory approval by the state Department of Financial Services, Federal Deposit Insurance Corp. and the Board of Governors of the Federal Reserve System, as well as the approval of PCSB Bank depositors.
PCSB Bank officials said a prospectus or proxy statement providing details of the conversion and stock offering is expected to be sent to bank depositors in the first quarter of 2017.
