On January 1, 2004, the company was changed from a bank holding company to a Domestic Entity Other as categorized by the Federal Reserve System, defined generically as a domestic institution that engages in the business of banking in the United States. The move was in preparation for its huge stock offering, the company's second-step mutual-to-stock conversion. On January 1, 2005, Ronald Hermance, Jr., replaced Gudelski as chairman, as well as retaining his existing positions as president and CEO. In 2004, he had also begun serving on the board of directors of the Federal Home Loan Bank of New York.