Ohio mutual to convert, hire new CEO

Van Wert Federal Savings Bank in Van Wert, Ohio, which is planning to convert to a stock-owned company, disclosed that it is also looking to hire a new president and CEO. 

The $134 million-asset mutual said in a prospectus that it plans to sell 1.85 million to 2.51 million shares of stock in VWF Bancorp between now and the end of June at $10 a share. Net proceeds would likely range from $17 million to $23.6 million. 

An overallotment arrangement could allow the mutual to sell an additional 379,500 shares. 

Van Wert Federal disclosed in the filing that is has begun a search for a new president and CEO to succeed Mark Schumm, who will become its chief operating officer and chief risk officer once a replacement is hired. 

The mutual said Schumm’s new positions will allow him to “better … facilitate our business strategy component of continuing to seek to grow and diversify our loan portfolio by increasing originations of commercial real estate loans and commercial and industrial loans.” 

Van Wert Federal will receive from VWF Bancorp a capital contribution equal to at least half of the net proceeds, or a projected range of $8.5 million to $13.7 million. The mutual also plans to contribute $100,000 to a charitable foundation it plans to form. 

VWF Bancorp said some of the remaining funds could be loaned to its employee stock ownership plan to fund the purchase of common stock. Other uses could include share repurchases, funding new loans, enhancing existing products and services and investment in securities.

Performance Trust Capital Partners will serve as the sole manager for the offering. 

Van Wert Federal lost $108,000 over the last half of 2021, after earning $258,000 during the prior 12 months. The loss of the last six months of 2021 largely reflected a $291,000 loss on the sale of investment securities and higher expenses after the mutual incurred consulting costs tied to its search for a new CEO.