The stock offering for Cullman Savings Bank has officially sold out and the move raised approximately $16.3 million for the local financial institution. The stock is set to be traded on the OTC Bulletin Board under the symbol “CULL” beginning Friday.

Bank account holders as of March 31, 2008 who ordered stock should have their orders filled, though sales were so popular that supplemental eligible account holders will not have their orders filled, according to a press release.

During the subscription offering, the bank sold 1,080,483 shares of common stock at $10 per share, the maximum amount that could be sold.

Under the restructuring, fifty-five percent of the stock will be owned by Cullman Savings Bank, with a minority 45 percent to be sold and traded.

Before the stock offering could happen, it had to be approved by a majority of bank members.

“The board of directors, officers and employees of Cullman Savings Bank express our gratitude for the overwhelming support for the offering by our customers, pledge our best efforts toward the opportunities ahead and look forward to serving the needs of our customers and new stockholders,” Cullman Savings Bank President and CEO John Riley said.

The need for an additional source of capital was cited as the primary reason for the reorganization, via a letter distributed to bank members before the offering was approved.

“The economic recession has already had a negative effect on our operations, and if it persists or deepens, could have a further negative effect on us,” the prospectus read.

During the first three months of 2009, the bank incurred a net loss, which was attributed to other-than-temporary impairment charges related to investments in the AMF Ultra Short Mortgage Fund and an investment in the holding company for the failed Silverton Bank, N.A.

“While Cullman Savings Bank has historically been profitable, we recorded a net loss of $342,000 during the three months ending March 31, 2009,” the prospectus read. “These expenses and other unanticipated expenses or unanticipated declines in income may prevent Cullman Savings Bank from returning to profitability during the remainder of the year.”

Though stock was offered as a means to raise capital, Riley said the bank is still in a very stable position.

“We are financially sound,” he said.

Cullman Savings Bank, which was originally organized in 1887, is currently ranked as a sound, four-star institution by

* Trent Moore can be reached by e-mail at, or by telephone at 734-2131, ext. 225.

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