State of the Pipeline – as of June 7, 2023

This feature has the latest news from the mutual bank conversion space. As of June 7, six conversions were in the pipeline.

On May 22, Gouverneur, NY-based Gouverneur Bancorp Inc. announced a second-stage conversion. The Tier 1 conversion date is Sept. 30, 2021. Kilpatrick Townsend & Stockton LLP is the legal counsel, and Keefe Bruyette & Woods Inc. will be the deal manager.

Celina, Ohio-based Mercer Bancorp Inc.'s standard conversion offering closes June 14. The bank hired President and CEO Barry Parmiter in February 2022 and Senior Vice President of Indirect Lending Ryan Moorman in July 2022. Parmiter and Moorman previously worked together at Caldwell, Ohio-based Community Savings Bancorp Inc., which was acquired by Double Bottomline Corp. in December 2021.

"Additionally, in January 2023, we began implementing an indirect automobile lending program, in which loan applications are referred to us by car dealerships," Mercer Bancorp said in its prospectus. "Our management team has experience with indirect automobile lending and we intend to prudently grow that segment of our loan portfolio."

Baltimore-based BV Financial Inc.'s second-stage conversion offering closes June 21. According to the prospectus, the exchange ratio for the newly issued shares ranges from 1.5271 at the minimum of the offering range to 2.3761 at the supermax.

Watkinsville, Ga.-based Oconee Financial Corp. has commenced a stock offering in conjunction with the merger conversion of Elberton, Ga.-based Elberton Federal Savings & Loan Association. The purchase discount in the offering for Oconee Financial shares is 15.0%.

On April 25, PFS Bancorp Inc., the proposed holding company for Peru, Ill.-based Peru Federal Savings Bank, filed an amended registration statement for its mutual-to-stock conversion. The number of shares offered declined 11.1%, compared to the initial application.

On March 13, SR Bancorp Inc., the proposed holding company for Bound Brook, NJ-based Somerset Savings Bank SLA, filed for a mutual-to-stock conversion. Three of the six directors at the bank, including Chairman and CEO William Taylor, are planning to subscribe for $250,000 worth of stock, which is the purchase limitation in the offering. The deal also includes the simultaneous acquisition of Livingston, NJ-based Regal Bancorp Inc.

Download a template showing the conversion pipeline, the market performance of recent conversions, the valuations of mutual holding companies and a list of conversion candidates.

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Starting in February 2023, State of the Pipeline is published monthly instead of weekly.

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