Boston, MA 03/10/2014 (wallstreetpr) – Meridian Interstate Bancorp, Inc. (NASDAQ:EBSB) which is the holding company of East Boston Savings Bank has announced that its board of directors in conjunction with board of directors at Trustees of Meridian Financial services have come into an agreement, for the adoption of a plan in which the company will reorganize into a new stock holding company. Meridian Interstate as a result of the agreement, will conduct a second step stock offering for its common stock.
Terms of the agreement
Full implementation of the agreement will see East Boston Savings bank becoming a wholly owned subsidiary of the new holding company, the new holding company will be known as Meridian Bancorp Inc. All the other shares other than those held under Meridian Financial services will be converted into shares of common stock of the new holding company.
Shares held under Meridian Financial Services will be canceled and shares of Meridian Bancorp representing the MHC’s ownership with interest will be sold under the second step stock offering. First priority for the stock offering of the new shares of common stock will be offered to depositors of the bank as of February 28, 2013.
The second step stock offering will have no impact on depositor’s, borrowers or customers of the bank, with the transactions only awaiting approval of stock holders, corporates at MHC as well as board of governors of the Federal Reserve System and the Massachusetts commissioner of banks.
Meridian Interstate Bancorp, Inc. (NASDAQ:EBSB) last updated its financial results on January 28 in which its net income for the fourth quarter ended December 31, 2013 came in at $4 million up from $2.1 million reported in 2012 same quarter. Return on asset value for the fourth quarter stood at an impressive 0.60% up from 0.38% for the same quarter in 2012
Meridian Interstate Bancorp, Inc. (NASDAQ:EBSB) remained unchanged on Friday trading session having dropped by 0.04% to close the week at $27.70
