This feature has the latest news from the mutual bank conversion sector. As of Dec. 17, four conversions were in the pipeline.
On Dec. 13, Wausau, Wisconsin-based Marathon Bancorp Inc. filed a registration statement for a second-stage conversion. The purchase limitation in the stock offering is $600,000. The exchange ratio ranges from 1.1368 at the minimum of the offering range to 1.7688 at the supermax. The company expects that the new shares will trade on the Nasdaq under the current ticker for the minority shares, MBBC.
On Dec. 12, Winchester Bancorp Inc., the proposed holding company for Winchester, Massachusetts-based Winchester Savings Bank, filed a registration statement for a mutual holding company conversion. The shares offered for sale in the conversion will account for 43% of the outstanding shares, with another 2% going to a charitable foundation that the company is forming. Winchester Bancorp MHC, the mutual holding company that will be formed, will hold a 55% stake. The purchase limitation is $250,000 for individuals and $750,000 for groups.
After eight consecutive profitable quarters, Winchester Savings Bank recorded a $632,000 net loss in the third quarter. The company said in the S-1 filing that it "charged off approximately 80% of a $1.6 million commercial loan" and that it "may not return to sustained profitability in the future."
Magnolia Bancorp Inc., the proposed holding company for Metairie, Louisiana-based Mutual Savings and Loan Association, has issued a prospectus for its mutual-to-stock conversion offering that expired Dec. 17.
The company's pro forma ratio of tangible common equity to tangible assets as of June 30 ranges from 45.6% at the minimum of the offering range to 49.5% at the supermax.
Mutual Savings has recorded a net loss for the last three quarters. "Because of declines in our net interest income and reduced demand for our fixed-rate loans, we currently expect to incur a net loss for the year ending December 31, 2024," the company said in the filing.
The bank, which had just one loan officer as of June 30, said in the prospectus, "We believe we will need to hire additional loan officers and grow our loan portfolio before we can return to sustained profitability, which will take time and increase our non-interest expense in the short term."
In an amended registration statement filed Oct. 9, the company disclosed that the resignation of the bank's CFO could impact its financial reporting timeliness.
On Sept. 12, Security Midwest Bancorp Inc., the proposed holding company for Springfield, Illinois-based Security Bank SB, filed a registration statement for a standard conversion.
In the filing, the company said, "In 2018, we implemented a cannabis-related business (CRB) program, offering deposit and cash-management services to licensed cannabis-related businesses. We currently offer depository accounts to customers operating licensed cannabis businesses in the states of Illinois, Michigan and Ohio. In December 2022, we initiated lending to cannabis organizations and their associated real estate entities."
As of June 30, Security Bank held $54.8 million of deposits from CRB customers, representing about 27% of total deposits, as well as $20.3 million of loans to CRB customers and associated real estate entities, comprising about 19% of total loans. One individual customer accounted for just over half of the CRB deposits. Additionally, fee income related to CRB deposit accounts has made up more than 50% of total noninterest income during the 18 months ended June 30.
The company said in the filing that it intends to grow the CRB program "modestly."
Download a template showing the conversion pipeline, market performance of recent conversions, valuations of mutual holding companies and a list of conversion candidates.
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