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Mutual banks are owned by their borrowers and depositors. Ownership and profit sharing are what differentiate mutual banks from stock banks, which are owned and controlled by individual and institutional shareholders that profit from them.
A conversion is the exchange of a convertible type of asset into another type of asset?usually at a predetermined price?on or before a predetermined date. The conversion feature is a financial derivative instrument that is valued separately from the underlying security.
Mutual banks are owned by their borrowers and depositors. Ownership and profit sharing are what differentiate mutual banks from stock banks, which are owned and controlled by individual and institutional shareholders that profit from them.
Bank Conversion means conversion of the Bank to the New Bank.
Mutual savings banks also have several disadvantages including being too conservative at times, having no member control, and having the possibility of being acquired or going public.
A conversion merger is when a mutual institution simultaneously acquires a stock institution at the same time it completes a standard stock conversion. A mutual FSA may acquire another insured institution that is already in the stock form of ownership at the time of its stock conversion transaction.
Mutual to stock conversions are highly complex corporate reorganizations where a company which is ?owned? by its depositors (if it is a financial institution such as a savings bank) or by its members or policyholders (if it is a mutual insurer) changes its form of organization to one where the mutual members' rights ...
The Demutualization Process In a demutualization, a mutual company elects to change its corporate structure to a public company, where prior members may receive a structured compensation or ownership conversion rights in the transition, in the form of shares in the company. Several demutualization methodologies exist.