RUSTON, La., May 19, 2010 (GLOBE NEWSWIRE) -- Bank of Ruston, a federally chartered savings bank headquartered in Ruston, Louisiana, today announced that its Board of Directors adopted a plan to convert Bank of Ruston (the "Bank") to a stock institution ("Plan of Conversion"). In accordance with the Plan of Conversion, Bank of Ruston will become a wholly-owned subsidiary of a stock holding company and the common stock of the holding company will be offered to members of the Bank and others in the manner and subject to the priorities set forth in the Plan of Conversion.
Benjamin L. Denny, President and Chief Executive Officer, stated that, "We are pleased and excited about the prospect of operating as a stock company as it will provide support for our lending activities and facilitate our growth through the development of additional new branches and facilities as well as possible acquisitions in the years ahead." Mr. Denny continued, "The Board of Directors believes the significant increase in the Bank's capital as a result of the conversion will permit the Bank to better serve our customers and the communities in which we currently operate and also permit us to expand into new markets as well as offer new products and services."
The Plan of Conversion is subject to approval by the Bank's members as well as the Office of Thrift Supervision. A proxy statement setting forth detailed information relating to the Plan of Conversion will be sent to members for their consideration prior to a special meeting called to consider the Plan of Conversion.
Depositors will continue to hold accounts in Bank of Ruston as a stock institution identical as to dollar amount, rate of return and general terms (other than voting and liquidation rights). Borrowers' loans will be unaffected by the conversion and will remain contractually fixed as they existed prior to the conversion. The normal business of Bank of Ruston of accepting deposits and making loans will continue without interruption in the Bank's existing offices.
Bank of Ruston anticipates filing the requisite regulatory applications in the near future. The offering of shares pursuant to the Plan of Conversion will be made only by means of a prospectus in accordance with the Securities Act of 1933, as amended, and all applicable state securities laws. This press release shall not constitute an offer to sell or the solicitation of an offer to buy any securities.
Bank of Ruston operates two full service banking offices in Ruston, Louisiana. As of March 31, 2010, Bank of Ruston had $89.0 million in total assets, $78.8 million in deposits and $8.6 million in total equity.
Sandler O'Neill & Partners, L.P. will serve as financial advisor and marketing agent with regard to the offering, Elias, Matz, Tiernan & Herrick L.L.P., Washington, D.C., is special counsel to Bank of Ruston for the conversion and stock offering.