Mutual Federal conversion clears approval despite shareholder objection
The Federal Reserve Board approved Mutual Federal Bancorp, MHC's conversion to stock ownership and MFB Bancorp, Inc.'s acquisition of Mutual Federal Bank. Pro forma assets would reach $107.1 million, assuming the conversion offering's midpoint.
New ownership without operational integration
The November 9, 2026 order permits Chicago-based Mutual Federal Bancorp, MHC and Mutual Federal Bancorp, Inc., its intermediate holding company, to cease existing.
Mutual Federal Bank becomes wholly owned by newly formed Delaware corporation MFB Bancorp, Inc. Assets totaled $96.6 million and deposits $63.5 million as of June 30, 2026.
The Board found capital, management, competition and deposit insurance considerations consistent with approval; no operational integration or bank management changes are planned.
One adverse commenter alleged management enrichment, poor execution and inadequate transparency, citing unmet plans from 2006.
The applicant cited better capital access, liquidity, lending capacity and dividend flexibility.
Existing products and the sole branch would remain.
Lending record clears supervisory review
The Office of the Comptroller of the Currency rated the bank Satisfactory on July 31, 2023, using mortgage originations from 2019–2021.
Lending to moderate-income borrowers was excellent, but geographic distribution was poor.
The Board clarified that the Naperville site closed after five months was a loan production office, not a branch.
The U.S. Department of Justice found no adverse competitive effect warranting objection.
Chair Warsh, Vice Chair Jefferson, supervision Vice Chair Bowman and Governors Powell, Waller, Cook and Barr voted for approval.
Approval retains enforceable limits
Approval remains conditional on all required regulatory clearances and compliance with commitments enforceable by the Board.
Completion cannot occur before the fifteenth calendar day after the order takes effect.
The three-month completion window can be extended for good cause by the Board or the Federal Reserve Bank of Chicago.