ECB in Mass. raises purchase limits for mutual conversion

ECB Bancorp in Everett, Mass., is letting investors buy more shares of its stock as part of its mutual-to-stock conversion. 

The $733 million-asset ECB said in a press release Tuesday that the maximum purchase limitation for individual investors was increased from 35,000 shares to 55,000 shares. 

The limit for a collective of purchasers was raised from 50,000 shares to 70,000 shares. 

Completion of the conversion of Everett Co-operative Bank, and the stock offering, remains subject to selling roughly 7.9 million shares of the company’s stock. 

ECB has said in a prospectus that it plans to sell up to 12.2 million shares of common stock. Net proceeds would likely range from $76.4 million to $119.7 million. 

Half of the net proceeds will be invested in ECB's bank, while 8.4% will be loaned to its employee stock ownership plan. About 41% of the net proceeds will remain at the holding company. 

ECB will contribute $600,00 in cash and 260,000 shares of common stock to a charitable foundation it plans to form in connection with the conversion.