Fairmount moves closer to stock-based organization

Depositors will be offered shares first

Fairmount Bancorp in Baltimore said Thursday it will begin a stock offering as part of the move to convert Fairmount Bank from a mutual to a stock-based organization.

The company said it has received approval from the Office of Thrift Supervision to start the conversion and the stock offering. The company plans to offer 425,000 to 575,000 shares of stock at a price of $10 per share.

Shares will first be offered to depositors as of Sept. 30, 2008, and then to the bank's employee stock ownership plan. After that, other depositors will be able to buy shares. Any remaining stock will be offered to area residents.

The stock offering will end May 14.