The Bank Slate

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Monroe Federal in Ohio plans to convert to stock-owned company

Monroe Federal Savings and Loan Association in Kipp City, Ohio, is planning to convert to a stock-owned company.

The $155 million-asset mutual said in a prospectus that it plans to sell 510,000 to 793,000 shares of stock in Monroe Federal Bancorp at $10 a share. Net proceeds would likely range from $3.7 million to $6.5 million. 

The high-end numbers represent shares sold if there is significant demand.Monroe Federal will receive a capital contribution from Monroe Federal Bancorp equal to at least half of the net proceeds, or a range of $1.9 million to $3.3 million.

Other uses could include funding loans, investing in securities, enhancing products and services and building or buying branches. The mutual said it doesn’t have “any understandings or agreements to establish or acquire new branches.”

Performance Trust Capital Partners will serve as the sole manager for the offering.

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