Abington Savings Bank to form holding company.ABINGTON, Mass.--(BUSINESS WIRE)--Aug. 22, 1996--Abington Savings Bank savings bank, financial institution that, until recently, performed only the following functions: receiving savings deposits of individuals, investing them, and providing a modest return to its depositors in the form of interest. (Nasdaq NMS See NetWare Management System. : ABBK) today announced that its board of directors has voted to form a holding company for the bank. The proposed holding company will be a newly formed Massachusetts corporation to be known as Abington Bancorp Inc. ("Bancorp"). The holding company formation will be accomplished pursuant to a Plan of Reorganization and Acquisition to be entered into between the bank and Bancorp. The terms of the plan provide that each issued and outstanding share of common stock of the bank (other than shares held by shareholders, if any, exercising dissenters' rights) will become one share of Bancorp common stock, and the bank will become a wholly-owned subsidiary of Bancorp. The holding company formation is subject to approval by the bank's shareholders and by banking regulators. James P. McDonough, the bank's president and chief executive officer, said that the holding company will provide the bank with additional flexibility for meeting the bank's future strategic needs and responding to competitive conditions in the financial services The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. marketplace. He noted that, in general, the holding company structure facilitates transactions such as acquisitions, and permits stock issuances and buybacks to be achieved with fewer regulatory and other restrictions than those currently affecting the bank. While there are at present no agreements or understandings regarding the issuance or repurchase of stock Repurchase of stock Technique to pay cash to firm's shareholders that provides more preferential tax treatment for shareholders than dividends. Treasury stock is the name given to previously issued stock that has been repurchased by the firm. or any other holding company activities, McDonough said that an important factor motivating the board's action was the desire to have the flexibility, following formation of the holding company, to consider from time to time whether market conditions are appropriate for stock repurchases Stock repurchase A firm's repurchase of outstanding shares of its common stock. . Abington Savings Bank is a Massachusetts' chartered savings bank with deposits insured by the Federal Deposit Insurance Corp. and the Depositors Insurance Fund The Depositors Insurance Fund was created by the state government of Massachusetts in response to the large number of Massachusetts bank failures during the Great Depression. The Federal Deposit Insurance Corporation was inspired by this fund. . In addition to its headquarters, main office and operations center The facility or location on an installation, base, or facility used by the commander to command, control, and coordinate all crisis activities. See also base defense operations center; command center. in Abington, the bank has six other branches in Halifax, Holbrook, Hull, Kingston, Pembroke and Whitman. CONTACT: Abington Savings Bank Edward J. Merritt, 617/982-3271 |
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