Touting loan success, Rhode Island's Coastway Community Bank ismoving ahead to form a mutual holding company to further expand itsfinancial base. Coastway converted from the $300 million Coastway Credit Union in 2009.

In a notice filed with state and federal regulators, thepresident/CEO of Coastway Bank, William White, said the formationof the holding company would permit new ties with other banks andfinancial service providers.

The filings did not address whether the bank would seek toconvert to a stock-held entity.

Depositors will vote on the proposed holding company formationat an April 30 meeting in Warwick, according to an April 3 letterfrom White sent to customers and posted online.

In the letter, White boasted that the conversion has been a hugesuccess and that the switch represents “an overwhelming vote ofconfidence” in management's decision to make the change.

“Since the conversion, business loans have increased by 58%,from $71 million to $112 million,” wrote White.

“We've written 1,800 mortgages totaling $357 million, 270commercial loans for local business totaling $91 million andassets, capital and savings have increased by 11%,” said White.

“Clearly,” he continued, “the conversion has been a success andnow Coastway has reached another milestone” in a pursuit to providebusiness lending clout.

The holding company structure also would help the $324 millionCoastway “maintain our independence,” in a reference that was notentirely clear. Efforts by Credit Union Times tocontact White for elaboration were unsuccessful.

The Coastway head, however, said the holding company formationgoverned by Coastway depositors would allow the bank to gain newstrength in the financial arena “without sacrificing ourindependence, our identity, our proud history, our local and longterm focus.”

Or more importantly, he wrote, “our mutual ownershipstructure.”

In a press statement distributed to Providence media, the banksaid it has filed its holding company application with the FederalReserve Board, the FDIC and the Rhode Island Department of BusinessRegulation.