Hyperion Bank Shareholders Approve Formation of Holding Company

Board, executive team say the structure provides flexibility, including ability to best leverage future opportunities

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Oct 23, 2020, 08:33 ET

PHILADELPHIA, Oct. 23, 2020 /PRNewswire/ -- At a specially called meeting Thurs., Oct. 22, Hyperion Bank shareholders approved the formation of a holding company, Hyperion Bancshares, Inc. As a result, Hyperion Bank will become a wholly owned subsidiary of the new holding company, pending regulatory approval.

"The Board of Directors of the Bank recognized that a bank holding company offers greater flexibility and positions the organization to take advantage of future opportunities," says Hyperion Chairman and CEO Charles B. (Charlie) Crawford, Jr. "The holding company is a very common structure for community banks because, among other things, of the flexibility it provides for capital."

Crawford notes that, while the holding company structure is a seamless change for customers, who will notice no differences, it does subject the bank to additional regulation and oversight by the Federal Reserve Board. He says the Board anticipates receiving all necessary approvals from State and Federal authorities by year end.

Once finalized, Hyperion Bank shareholders will own shares of the holding company instead of the bank. Likewise, based on the exchange ratio, shareholders will own the same proportional share interests in the holding company as they held in the bank.

While a capital raise sometimes follows the formation of a holding company, Crawford says there are no immediate plans to do so. "We're undertaking this to ensure we're best positioned to leverage future opportunities," he says.

In its Second Quarter 2020, Hyperion Bank reported the most profitable quarter in its 14-year history. The bank will mark its 14th anniversary in November and in September marked the first anniversary of its expansion to Atlanta. This Spring the bank launched Hyperion Mortgage (in Atlanta) as a joint venture with a national mortgage organization.

Hyperion Bank is a full-service community bank, which connects with customers via technology and highly accessible, experienced, enthusiastic bankers who have local decision-making authority. Member FDIC. Equal Housing Lender. Offer of credit is subject to approval. #communitybanking #HyperionBank #GeorgiaBanks #PennsylvaniaBanks #PhiladelphiaBanks #AtlantaBanks #communitybanks #communitybankers #HyperionMortgage

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B. Andrew (Drew) Plant
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SOURCE Hyperion Bank