Fed Approves Applications Tied to Mutual Federal Conversion

The Federal Reserve Board on Monday, Nov. 9, approved two applications tied to Mutual Federal Bancorp’s proposed conversion and a new parent company for the Chicago bank.

One application covers converting Mutual Federal Bancorp, MHC from mutual to stock form. The other approves MFB Bancorp, Inc.’s acquisition of Mutual Federal Bank, making it the bank’s new savings and loan holding company.

Under the proposed structure, Mutual Federal Bancorp, MHC and the mid-tier Mutual Federal Bancorp, Inc. would cease to exist. Mutual Federal Bank would become a wholly owned subsidiary of MFB Bancorp. As of June 30, 2026, the MHC held 77.4% of the mid-tier company, while public stockholders held 22.6%.

The new parent is estimated to have $107.1 million in assets after completion under a midpoint offering scenario. Shares are priced at $10 each, and at least 765,000 shares must be sold.

The conversion still requires approval from MHC members and Mutual Federal Bancorp stockholders, completion of the minimum share sale, compliance with the Federal Reserve Board’s order and other required regulatory approvals.