BCSB to reorganize, conduct stock offering

Maryland Watch

May 22, 1998

Baltimore County Savings Bank said yesterday that it has received approval from a federal regulator to raise as much as $19.8 million in a stock offering targeting depositors and customers.

The Perry Hall-based savings bank is offering up to 1.98 million shares at a price of $10 each.

Shares will be offered on a priority basis to employees, depositors and certain borrowers, the company said.

The bank received approval to offer the shares from the Office of Thrift Supervision.

BCSB has been operating as a mutual savings bank, which means it is owned by its depositors. It will reorganize and become a "mutual holding company," which will allow it to raise the money and maintain a large ownership position.

As part of the reorganization, the bank will become a wholly owned subsidiary of BCSB Bankcorp.

With money raised from a stock offering, BCSB could open new branches, invest in automatic teller machines and expand its product line.

A prospectus will be mailed to eligible depositors today, the company said. Raleigh, N.C.-based Trident Securities Inc. is managing the offering.

Pub Date: 5/22/98

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