bank mutuals

[Neversummer]

I am sure there must be a board on this, I searched but couldn't find it.

 

I am looking at setting up savings accounts in a few bank mutual to play for the potential of conversions. I have a few questions:

 

1) Is there a typical minimum you need to have in order to be a member and eligible to buy shares in a conversion? In reality can you just plunk a $100 in a savings account ? It just seems too little frankly in order to get a real shot at the pie.

 

2) How do you know if you need to be a  "local" depositor? I have read that some banks wont allow out of state depositors to become members.

 

3) Are there any particular interesting tidbits or financials that make sense to be markers for banks that may go demutualize soon?

 

4) Are there any scenarios where you can be a depositor but not be included or offered shares in a demutualization? I realize sometimes they offer tier 1 and tier 2 type levels but curious outside of tenor and deposit size if there are any other general characteristics for an individual depositor?

 

I am really interested in doing this (besides for being profitable frankly it seems intellectually fun), but I also have been told you don't want to poke around and ask too many questions of people in the bank as they may be annoyed/turn you away particularly if you are an out of towner.

 

Any other thoughts or suggestions are welcome.

 

Thanks!

[Guest MikeTheCannon]

I'm not sure if it has any answers for you but Planet Money did an episode where they interview a family which does this: http://www.npr.org/sections/money/2017/03/31/522226226/episode-762-the-fine-print

 

[rawraw]

I think deposit size and stuff are determined by the rules established at each mutual.

 

For financials, look for fast growing mutual with low capital levels. That's often a reason they convert. I have a few of these deposit accounts but it isn't as easy as it used to be

[Scuttlebutt Plunger]

I'm not sure if it has any answers for you but Planet Money did an episode where they interview a family which does this: http://www.npr.org/sections/money/2017/03/31/522226226/episode-762-the-fine-print

 

This podcast was interesting - wonder how many of these opportunities are left.  In the event you don't listen to the podcast, a couple had foresight to travel across the country at set up these accounts. 

[rawraw]

I'm not sure if it has any answers for you but Planet Money did an episode where they interview a family which does this: http://www.npr.org/sections/money/2017/03/31/522226226/episode-762-the-fine-print

 

This podcast was interesting - wonder how many of these opportunities are left.  In the event you don't listen to the podcast, a couple had foresight to travel across the country at set up these accounts.

It still exists, but the mutuals caught on.  So I think it is harder to exploit.  I try to add an account every so often.  I only have like 5 now at high probability conversions.