AUBURN – Auburn Savings Bank is extending its offer of shares, following an initial offering that didn’t reach the bank’s goal.

The bank is attempting to raise between $2.25 million and $3 million by selling shares at $10 each so it can increase its loan capacity. Last month, members voted to form a holding company that would hold 55 percent of the shares of Auburn Savings Bank and make 45 percent available to the community.

Bank President Allen Sterling said despite two well-attended community meetings and a host of requests for the prospectus, the bank still has not reached the minimum of 225,675 shares sold. The initial phase of the offering ended June 20.

“I think it’s the market, the bank market, the stock market and people’s perception of the economy right now,” said Sterling. “We’re a small, $65 million bank making money while the billion-dollar banks are losing money. Unfortunately, we get lumped together with every other financial institution out there.”

Sterling said he and other bank officials are calling people and encouraging them to ask for a prospectus from its stock information center at 782-5789. He said he could not say how many of the community-based shares have been sold to date, but the offering will continue until it is filled, or until it legally expires in early August.

The 121-year-old bank intends to use the new capital primarily to finance loans for small businesses and homeowners.

Orders that have already been received by Auburn Bancorp Inc., the bank’s holding company, will accrue interest until the offering is complete. Once issued, the stocks will be quoted on the OTC Bulletin Board.


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