Frequently Asked Questions of Mutual Holding Company

 

The Plan …

The Board of Directors of San Luis Valley Federal Bank (the “Bank”) unanimously adopted a Plan of Reorganization (the “Plan”) to reorganize from a mutual bank to the mutual holding company form of organization (the “Reorganization”). As part of the Plan, the Bank will become a Federal stock savings bank, which will be wholly owned by Colorado Mutual Bancorp, (the “Stock Holding Company”), which will be wholly owned by Colorado Mutual Holding Company (the “Mutual Holding Company”).

Q. What changes will occur as a result of the Reorganization?
A. No changes are planned in the way we operate our business for our members. The Reorganization will have no effect on the staffing, products or services we offer.

Your vote is very important. Your Board of Directors urges you to vote “FOR” the Plan. If you have more than one account, you may receive more than one proxy, depending on the ownership structure of your accounts. Please support us by voting all proxy cards received.

THE REORGANIZATION

Q. Why is San Luis Valley Federal Bank reorganizing to a mutual holding company structure?
A. The Board of Directors is committed to maintaining the mutual structure of our organization and is committed to remaining an independent community-based institution. The Board believes the mutual holding company structure provides the best way to ensure these commitments are fulfilled. The Reorganization will provide greater organizational and operating flexibility to the Bank, including increasing our ability to raise capital, while retaining our mutual status. The mutual holding company structure also will facilitate the Bank’s future ability to acquire other financial institutions and businesses should those opportunities arise.

Q. What changes will occur as a result of the Reorganization?
A. No changes are planned in the way we operate our business for our members. The Reorganization will have no effect on the staffing, products or services we offer.

Q. Will the Reorganization affect any of my deposit accounts or loans?
A. No. The Reorganization will have no effect on the balance, interest rate or terms of any deposit account or loan. Account numbers will not change, checks will not have to be re-ordered and online and mobile banking accounts will not change. Your deposits will continue to be federally insured by the FDIC up to the maximum legal limit. a Mutual Holding Company Structure

Q. Will there be a public stock offering?
A. No. The Reorganization will not involve the issuance of stock to the public or to any depositors, board members or employees of the Bank at this time. The Reorganization will allow the Bank, through the Stock Holding Company, to conduct a stock offering in the future to provide for the capital needs of the organization, if necessary or strategically important.

THE VOTE

Q. Is the approval of the depositors of the Bank necessary to complete the Reorganization?
A. Yes. The Plan requires the approval of a majority of the votes eligible to be cast by depositors in accordance with the rules of the Federal Reserve, as explained in the Proxy Statement.

Q. Who is eligible to vote?
A. All depositors having accounts with the bank as of June 17, 2019 are entitled to vote by the methods detailed on the proxy card or at the Special Meeting on July 29, 2019.

Q. Am I required to vote?
A. No, but the Board of Directors encourages you to vote “FOR” the plan. Your vote is very important because not voting has the same effect as a vote against the Plan.

Q. Why did I get several proxy cards?
A. You may receive more than one proxy card if you have more than one account, depending on the ownership structure of the accounts. Please support us by voting all proxy cards you have.

Q. How do I vote my proxy?
A. You can vote by mailing your proxy card(s) in the postage-paid envelope marked “PROXY RETURN” or by telephone or Internet as instructed on the proxy card.

Voting Details

  • A signature is required on all proxy cards for those voting by physical proxy card.
  • Only one signature is required on a proxy card for a joint account.
  • For trustee or custodial accounts, the trustee or custodian must sign the proxy card. The executor (administrator) for a deceased depositor’s account may vote and sign the proxy card, as long as they note the capacity in which they are signing.
  • An individual with power of attorney on an account may vote and sign the proxy card, as long as they note the capacity in which they are signing.
  • For other specialized accounts, please check in with one of our Member Services Representatives at any branch.

 

The Special Meeting of Depositors will be held at the San Luis Valley Federal Annex building, located at 402 Edison Avenue, Alamosa, Colorado, on July 29, 2019 at 1:00 PM local time.


ADDITIONAL INFORMATION

For additional information, please call our Proxy Information number at 877-478-8625, Monday through Friday from 9:00 a.m. to 4:00 p.m.

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