Business Description
On April 8, 2014, Sugar Creek Financial Corp., the Maryland-chartered holding
company for Tempo Bank (the “Bank”), completed the “second
step” conversion of the Bank from the mutual holding company to the stock
holding company form of organization (the “Conversion”) pursuant
to an Amended and Restated Plan of Conversion and Reorganization. Upon completion
of the Conversion, the Company became the holding company for the Bank and 535,127
shares of common stock, par value $0.01 per share, of the Company were sold
in subscription and community offerings to certain depositors of the Bank and
other investors for $7.00 per share. In addition, approximately, 414,118 additional
shares of the Company’s common stock (without taking into consideration
cash issued in lieu of fractional shares) were issued in exchange for the outstanding
shares of common stock of Sugar Creek Financial Corp. (“Old Sugar Creek
Financial Corp.”), the former federally-chartered mid-tier holding company
for the Bank, held by persons other than Sugar Creek MHC. In the Conversion,
each share of common stock of Old Sugar Creek Financial Corp. was converted
into the right to receive 1.0453 shares of common stock of Sugar Creek Financial.
Tempo Bank was originally chartered in 1889 as an Illinois state-chartered
mutual building and loan association named “Trenton Building and Loan
Association.” Tempo Bank converted to a federally chartered savings bank
in 1989 and changed its name to “Tempo Bank, A Federal Savings Bank.”
Tempo Bank adopted its present name in October 2006. Tempo Bank is regulated
by the Office of the Comptroller of the Currency (the “OCC”).
We have legal authority to invest in various types of liquid assets, including
U.S. Treasury obligations, securities of various federal agencies and of state
and municipal governments, mortgage-backed securities and certificates of deposit
of federally insured institutions. Within certain regulatory limits, we also
may invest a portion of our assets in corporate securities and mutual funds.
We also are required to maintain an investment in Federal Home Loan Bank of
Chicago (“FHLBC”) stock.
Our investment objectives are to provide and maintain liquidity, to establish
an acceptable level of interest rate and credit risk, to provide an alternate
source of low-risk investments when demand for loans is weak and to generate
a favorable return. Our board of directors has the overall responsibility for
the investment portfolio, including approval of our investment policy. The board
of directors is also responsible for implementation of the investment policy
and monitoring our investment performance. Our board of directors reviews the
status of our investment portfolio on a monthly basis, or more frequently if
warranted.
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