The shareholders of Hyperion Bank, in a meeting held last week,  authorised setting up a holding company named Hyperion Bancshares.

Subject to regulatory approvals, Hyperion Bank will become the wholly owned subsidiary of Hyperion Bancshares.

If the move is finalised, the shareholders will receive shares in the holding company rather than in the bank.

They will receive the same proportional share interests as they had in the bank based on the exchange ratio.

Hyperion chairman and CEO Charles Crawford said: “The Board of Directors of the Bank recognized that a bank holding company offers greater flexibility and positions the organization to take advantage of future opportunities.

“The holding company is a very common structure for community banks because, among other things, of the flexibility it provides for capital.”

Crawford added that the bank customers will not be impacted by this move. However, Hyperion Bank will be subjected to additional regulations by the Federal Reserve.

He expects to receive the regulatory nod to set up the holding company by the end of this year.

He also informed that there are currently no plans to raise capital – a move that could help form the holding company.

Crawford said: “We are undertaking this to ensure we are best positioned to leverage future opportunities.”

Hyperion Bank is an FDIC-member and equal housing lender.