The $1.7 billion-asset
bank is asking shareholders to approve forming Princeton Bancorp at the 2022
annual meeting set for April 29.
Bank of Princeton
said in a regulatory filing that the reorganization would give it “a greater
ability” to raise Tier 1 capital, which would help it “to continue to grow at
the rate we desire, including through acquisitions, and to better protect
ourselves from losses in the future.”
The bank said having
a holding company would give it more flexibility to pursue acquisitions “because it permits the ownership of separate
subsidiaries with independent management.” Certain state and federal
regulations also limit the types of businesses the bank can pursue without a
holding company.
If
approved, Bank of Princeton plans to reorganize in the third quarter.
Bank of Princeton agreed in May 2016 to sell to Investors Bancorp, but the proposed deal was terminated in early 2017 after Investors entered into an informal agreement with regulators tied to its Bank Secrecy Act and anti-money laundering compliance.
Investors recently was sold to Citizens Financial Group.
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