Magyar Bank set plans to sell 2.3 million shares at $10 apiece.
The New Brunswick, N.J., community bank said its holding company parent, Magyar Bancorp, will hold a subscription offering open to eligible Magyar Bank depositors, a newly-created employee stock ownership plan and members of the public. The shares being offered will represent a minority of the shares to be outstanding following the completion of Magyar Bank's mutual holding company reorganization.
Magyar Charitable Foundation will be funded with a cash contribution of $500,000 and shares of Magyar Bancorp common stock equal to 1.77% of outstanding shares following the completion of the reorganization and offering.
Following completion of the transaction, Magyar Bancorp MHC, the mutual holding company of Magyar Bancorp, will own 54.03% of the outstanding common stock of Magyar Bancorp.
Proxy materials related to the reorganization, along with stock offering materials, will be mailed to eligible Magyar Bank depositors Nov. 23. The stock offering will end at noon on Dec. 16.
Magyar Bank is a three-branch community bank that provides banking services in New Brunswick, North Brunswick and South Brunswick. At Sept. 30, Magyar Bank had total assets of $357.4 million and total retained earnings of $24.5 million.