State of the Pipeline – February 2026

This feature has the latest news from the mutual bank conversion sector. As of Feb. 25, four conversions were in the pipeline.

On Feb. 2, Fair Lawn, New Jersey-based Columbia Financial Inc. announced a second-stage conversion and simultaneous acquisition of Woodbridge, New Jersey-based Northfield Bancorp Inc. The preliminary independent appraisal by RP Financial LC shows a price to pro forma tangible book value of 94x and a pro forma tangible common equity to tangible assets ratio of 16.7% at the midpoint of the offering range, according to an investor presentation. Columbia said in the presentation that it could file a conversion registration statement, which will include an updated appraisal, in early March. The Tier 1 date for eligible account holders is Dec. 31, 2024.

On Feb. 10, Poughkeepsie, New York-based Rhinebeck Bancorp Inc. announced a second-stage conversion. Rhinebeck also set its Tier 1 date at Dec. 31, 2024.

Carteret, New Jersey-based URSB Bancorp Inc.'s mutual-to-stock conversion offering expired Feb. 12.

According to the prospectus, many of United Roosevelt's one- to four-family, multifamily, commercial and industrial (C&I), and consumer loans have been purchased rather than originated internally. As of Sept. 30, 2025, the balance of purchased C&I loans from BHG Financial, formerly known as Bankers Healthcare Group LLC, was $35.3 million, or 12.5% of the bank's loan portfolio.

United Roosevelt began buying C&I loans from BHG in early 2016. The bank also started buying participation interests in syndicated leveraged lending loans in November 2023 from BancAlliance Inc.; the balance of that exposure on Sept. 30, 2025, was $4.0 million. Additionally, United Roosevelt began purchasing consumer loans from BHG and Woodside Credit LLC in the second quarter of 2025 and from LendingClub Corp. in the first quarter of 2025.

On Feb. 18, PSB Financial Inc. filed an amended registration statement for a mutual-to-stock conversion. PSB is the proposed holding company for Pioneer State Bank, the successor to Deer Lodge, Montana-based Pioneer Federal Savings and Loan Association. The price to pro forma tangible book value as of Dec. 31, 2025, was between 41.5% at the minimum of the offering range and 53.7% at the supermax. The tentative closing date for the offering is March 31.

In the filing, PSB said, "We are considering branching opportunities that may arise in our primary market area, including a potential branch office in western Montana in late 2026 or the first six months of 2027."

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