MOUNTLAKE TERRACE, Wash. – 1st Security Bank of Washington, a troubled former credit union known until 2004 as Washington’s CU, announced this afternoon it raised $32.4 million with an initial public offering, the latest credit union-convert to go public.

Depositors in the former credit union back to June 30, 2007, had first crack at the IPO, but it’s unclear how many of those depositors had been credit union members in 2004 when it switched to a mutual savings bank charter. The bank said depositors who had at least $50 in their accounts as of June 30, 2007 bought up all 3.2 million shares of common stock at the $10 IPO price they were entitled to.

The one-time credit union had been under supervisory agreements until 2011 and has reduced the number of branches it had to six, from the 14 it operated as a credit union. It reported net income of $15 million and $1.6 million for 2010 and 2011, after losses of $12.5 million from 2007 through 2009.

The then-credit union mushroomed in size in 2000 and 2001 by merging three credit unions, then converted to a mutual savings bank in 2004, after which it changed its name to 1st Security Bank.

The IPO comes as at least three credit unions--including giants Tech CU and HarborOne CU--are in the procees of converting to a mutual savings bank, a move that often leads to a public offering.

The shares are listed on the Nasdaq under FSBW, for First Bancorp, the holding company that owns the $300 million ex-credit union.


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