Pioneer Bank will sell stock to raise money as bank reorganizesFebruary 04, 2019
Pioneer Bank is planning to raise money selling stock as part of a reorganization of the Colonie bank into a mutual holding company.
The board of directors of Pioneer Bank recently approved these changes along with a minority stock issuance. The newly formed stock holding company plans to sell up to 49 percent of its shares of common stock to depositors, employees and others.
The sale of stock will raise capital for new growth, the Pioneer Bank Foundation and employee benefit plans. The bank will remain under local control.
Thomas Amell, CEO and president of Pioneer Bank, declined to comment beyond a written statement.
“We are very proud to continue building upon all that we have achieved as an organization, and to keep translating our successes into further investment in the Capital Region,” Amell said in a release. “Pioneer Bank remains committed to our community, our customers and our employees, and this milestone reorganization enables us to raise capital while still maintaining our mutuality.”
Amell has transformed what was a $680 million savings bank in downtown Troy into a regional bank with more than $1 billion in deposits and a $15 million headquarters in Colonie at one of the busiest intersections in the region. Pioneer has 22 branches from Cairo to Queensbury.
That growth has put Pioneer Bank in competition with banks 10 times its size.
The money raised with the reorganization and stock offering will help Pioneer grow and stay more competitive.
As part of this process, Pioneer Bank will create more wealth for its employees through an employee stock ownership plan.
The reorganization is subject to regulatory approval by the New York State Department of Financial Services, the Federal Deposit Insurance Corp. and the Board of Governors of the Federal Reserve System. Depositors of Pioneer Bank must approve it as well.
The stock holding company of Pioneer Bank will file a registration statement for the offering of the shares of common stock with the U.S. Securities and Exchange Commission.
A prospectus will be sent to members of Pioneer Bank sometime in the second quarter of 2019.
Upcoming Chamber EventsView All Events »