San Luis Valley Federal Bank successfully completed the formation of a new multi-tier mutual holding company structure. The bank converted from a federally chartered Mutual Thrift to a federally chartered Mutual Holding Company. The results of a depositor vote were finalized at a Special Meeting held at the bank on July 29. More than 92 percent of the votes cast were in favor of the plan.
Bank CEO Duane Bussey said, “We appreciate all of our members (depositors) who engaged in this process. As a mutual bank, a change to our legal structure had to be approved by a majority of our members. This was the largest communication with members we have ever done, and because it was a highly regulated process, we had to follow all the steps prescribed by bank regulators. We wish there would have been an easier way to communicate what is a complicated process on paper. However, we‘re happy we could make this change without impacting how our members do business and without any name change.
“The holding company form of organization gives us some options to raise capital, and to grow, that we didn’t have as a standalone mutual bank. We like being an independent mutual organization and we believe the holding company structure will help us maintain our independent status and maintain our very significant capital strength far into the future. We’re committed to continuing our service to our members and the Valley at the highest level possible,” said Bussey.
San Luis Valley Federal Bank has $280 million in assets, more than 16 percent capital, and provides mortgage, commercial and consumer lending products and a complete menu of deposit services. The bank was founded in 1899 and serves all six counties of the San Luis Valley.