ONEIDA — Oneida Savings Bank will reorganize from the current two-tier mutual holding company structure to a stock holding company structure and will undertake a "second-step" offering of new shares of common stock, its parent company, Oneida Financial Corp. announced.

As part of the conversion and reorganization, the bank will become a subsidiary of a to-be-formed state chartered holding company, and shares of stock will be converted into shares of stock of the new holding company with an exchange ratio designed to preserve the percentage ownership interests. The new holding company will also sell shares to the bank’s eligible depositors and tax-qualified employee benefit plans and to members of the public in a subscription and community offering and, if necessary, a syndicated community offering. The highest priority will be depositors with qualifying deposits as of Dec. 31, 2008.

Special meetings of the shareholders and the depositors of the bank will be held to approve the plan of conversion; it is likely that those meetings will be held at the end of the second quarter of 2010. A prospectus or proxy statement-prospectus, as applicable, and other proxy materials containing information relating to the plan, details of the offering, and business and financial information about the company will be sent to shareholders and depositors prior to the meetings.

The bank’s normal business operations will continue without interruption during the conversion, according to the company. The transaction will not affect the existing terms and conditions of deposit accounts and loans with the bank. Deposit accounts will continue to be insured by the Federal Deposit Insurance Corp.

Redesigned Web site: www.oneidabank.com