Connecticut bank regulators have approved a plan by Farmington Bank, a long-time lender whose depositors are among its owners, to become a fully public company.
The $1.5 billion-asset bank announced in January that its board of directors approved a plan to convert its mutual holding company into a public stock form of ownership.
Farmington Bank, which recently opened a branch in West Hartford’s Elmwood neighborhood, will become the latest Connecticut community lender to convert to a public company.
It is raising as much as $132 million to continue its recent growth spurt and buffer against higher capital levels being demanded by regulators.
As part of the conversation, the bank’s mutual holding company, First Connecticut Bancorp, Inc, will be converted to a newly formed, public holding company with the same name.
FCB expects to offer between 9,775,000 and 13,225,000 shares of common stock at a purchase price of $10 per share. The banks depositors  as of Sept. 30, 2009 will have the first chance to purchase those shares in a subscription offering.
Shares of common stock not purchased in the subscription offering will be offered to the general public with a preference given to Hartford county residents. Â
FCB will also issue an additional number of shares equal to 4 percent of the shares issued in the offering to a new charitable foundation to be established by the Bank.Â
After the completion of the reorganization, FCB will own all of the outstanding common stock of the bank. The common stock of FCB is expected to trade on Nasdaq.
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