Farmington Bank, a long-time lender whose depositors are among its owners, will try to raise $132 million in new capital as it converts to a public company.
The $1.5 billion bank announced Friday that its board of directors has approved a plan to convert its mutual holding company into a public stock form of ownership. Farmington Bank will become the latest Connecticut community lender to convert to a public company  as it tries to raise up to $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 the NASDAQ Global Select Market.
“Recent changes in federal regulations have made it more important than ever for community banks to have in place new ways to raise capital,” said John J. Patrick, Jr., chairman, president and CEO. “Pursuing this path will ensure Farmington Bank remains strong and continues to meet the needs of our customers and the community. The conversion will have no impact on normal business operations of the Bank and will not affect the terms or conditions of any deposit or loan accounts held by customers.”
Â
