Monroe Federal members to vote on conversion plan, stock sales

Members of Monroe Federal Savings and Loan have been asked to approve a plan to convert the bank to a new form of ownership and offer stock for purchase.

Members of the bank received a letter from Monroe Federal Savings and Loan CEO Lewis Renollet, describing the plan to convert the bank from a mutual form of ownership, with no stockholders, to a stock form of ownership. Depositors and borrowers of Monroe Federal will vote on the conversion by mail. The board of directors will vote on the plan during a special meeting scheduled for 3:30 p.m. on Monday, Sept. 26.

Under the plan, Monroe Federal Bancorp, Inc., a newly-formed Maryland corporation, would become the holding company for Monroe Federal. Stock in Monroe Federal Bancorp is being offered to Monroe Federal members for purchase before the general public, the letter said.

“Our board of directors unanimously recommends that you vote “for” the plan of conversion,” the letter said. “Although we have received conditional regulatory approval to implement the plan, we must receive the approval of our members, who are depositors and borrowers of Monroe Federal.”

“Proceeds from the sale of stock by Monroe Federal Bancorp, Inc. will support our business strategy,” the letter received by members said. “There will be no change to account numbers, interest rates, or other terms of deposit accounts or loans at Monroe Federal.”

Members and customers will still receive the same services with the same board of directors, management and staff, the letter said.