State of the Pipeline – as of July 12, 2023

This feature has the latest news from the mutual bank conversion space. As of July 12, eight conversions were in the pipeline.

NB Bancorp Inc., the proposed holding company for Needham, Mass.-based Needham Bank, filed a registration statement for a mutual-to-stock conversion on June 9. Gross proceeds at the supermax of the offering range are $396.8 million, representing the second-largest standard conversion in the last 15 years, behind just Eastern Bankshares Inc.'s October 2020 deal.

Also on June 9, Gouverneur, NY-based Gouverneur Bancorp Inc. filed for a second-stage conversion. There is no supermax offering range level. The exchange ratio ranges from 0.5342 at the minimum to 0.7227 at the maximum.

Central Plains Bancshares Inc., the proposed holding company for Grand Island, Neb.-based Home Federal Savings and Loan Association of Grand Island, filed a registration statement for a standard conversion on June 14. The purchase limitations are $350,000 for individuals and $500,000 for groups.

On June 9, SR Bancorp Inc., the proposed holding company for Bound Brook, NJ-based Somerset Savings Bank SLA, filed an amended registration statement for a mutual-to-stock conversion. The number of shares offered declined 20% compared to the valuation in the initial filing. In another amended registration statement filed July 10, the purchase limitations for groups increased to $400,000 from $250,000, and the proposed insider purchases went up by 5,000 shares.

The deal also includes the simultaneous acquisition of Livingston, NJ-based Regal Bancorp Inc.

PFS Bancorp Inc., the proposed holding company for Peru, Ill.-based Peru Federal Savings Bank, also had its pro forma valuation get slashed in a June 9 filing, although not as severe as at SR Bancorp. PFS Bancorp's amended filing showed a more than 6% decline in the number of shares offered.

Baltimore-based BV Financial Inc. extended its community stock offering for its second-stage conversion to July 14. The company had received valid orders as of June 30 for 74.0% of the shares offered at the minimum of the offering range. The exchange ratio is 1.5271 and the price to pro forma tangible book value at March 31 is 67.2% at the minimum, according to the prospectus.

The offerings by Mercer Bancorp Inc. and Oconee Financial Corp. closed June 23. Oconee Financial is acquiring Elberton, Ga.-based Elberton Federal Savings & Loan Association in a merger conversion, while Mercer Bancorp is completing a standard conversion.

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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Other news stories about mutuals, mutual holding companies, recent conversions and activist investors

Piedmont Financial to acquire Wake Forest Bancshares

Louisiana-based M C Bancshares to acquire in-state peer Heritage NOLA Bancorp

Activist investor group buys shares of Provident to maximize shareholder value

Fed issues enforcement action to Lake Shore, units

Nearly 44% of HV Bancorp investors prefer cash payout in Citizens Financial deal

Bay State Savings Bank CEO to retire; successor named

Ponce Financial Group joins the Russell indexes

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

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