(GLASTONBURY, CT) September 16, 2016 – Effective immediately, Bankers’ Bank Northeast has reorganized into a financial holding company known as BBN Financial Corporation. Upon consummation, the holding company acquired all of the issued and outstanding shares of capital stock of BBN. The Plan of Reorganization was approved by the board of directors in February 2016 and unanimously supported by shareholders in April 2016. Subsequently, a Connecticut state legislative process to amend the Bank’s original charter was completed, regulatory approval was granted and the reorganization became official on September 8, 2016.
The Bank, which was formed in 1998 as a Connecticut chartered banker’s bank is now a subsidiary of the holding company. Existing Bank directors have become directors of the holding company and existing Bank shareholders have been converted on a one-for-one basis into shareholders of the new holding company.
It is anticipated that the holding company will better suit the current and future interests of shareholders and customers by allowing for greater operating flexibility in a highly regulated banking industry. It is further envisioned that the new structure will afford enhanced opportunities for expansion into other areas of financial services, either through the creation of new subsidiaries or through the acquisition of other companies. The company also may look to engage in more sophisticated tax planning by appropriate placement of certain business operations within the new structure.
Craig Howie, President and CEO, said “We are very pleased with the new operating structure and we want to thank our Board of Directors and shareholders for supporting the reorganization. We recognize the challenges in the banking industry so we feel this gives us a great platform from which to help our clients and grow our business.”
About BBN Financial Corp.: BBN Financial Corp. is parent to Banker’s Bank Northeast, a Connecticut state chartered and federally regulated correspondent bank providing critical services and operational support to community financial institutions.