Tuesday, March 15, 2016

Harboring One IPO

I don't know why I decided to advance it to you now....

"HarborOne Bank plans to sell shares" by Deirdre Fernandes Globe Staff  March 07, 2016

HarborOne Bancorp Inc. has filed plans to go public and sell shares in a partial stock offering, a move that bank executives say is necessary to raise capital, while critics argue that it means a big payday for insiders.

Once the state’s second-largest credit union, HarborOne converted into a cooperative bank in 2013. Now, it plans to sell just under 50 percent of shares in the bank to create a mutual holding company and raise as much as $136 million to expand its franchise, fund new loans, and improve existing products.

The conversion from a credit union three years ago was controversial, viewed by critics as an incremental step toward a public stock offering that would benefit management at the expense of consumers.

Interest rates on car and home loans tend to be lower at credit unions, since there are no stockholders who demand dividends, said Debbie Matz, chairwoman of the National Credit Union Administration, the chief regulator for credit unions.

Matz predicted that HarborOne’s conversion to a cooperative bank would probably lead to public stock sale. She said Monday that she was “disappointed,” but not surprised by HarborOne’s move.

“My first reaction was ka-ching, ka-ching, ka-ching,” Matz said. “The only reason to convert is to enrich the board members and management.”

James W. Blake, HarborOne’s chief executive, disputed Matz’s assertion. “We’re doing this to grow,” he said....

The que$tion is what.


The phone call is for you, dear readers!