Madison Bank of Maryland in Forest Hill plans to convert from a mutual thrift to a stock-owned institution.
The $141 million-asset thrift plans to raise about $24 million as part of its conversion. Madison Bank will use the proceeds to fund lending and increase capital levels, according to a regulatory filing. The thrift said it could also add branches or make acquisitions.
Madison Bank, which will remain federally chartered, will form a new savings-and-loan holding company, MB Bancorp. The conversion requires approval from the Office of the Comptroller of the Currency and from a majority of the bank's voting members.
Madison Bank recorded a total of about $1.1 million in losses for 2012 and 2013. It earned $95,000 for the first half of this year.
Keefe, Bruyette & Woods and Feldman Financial Advisors are advising Madison. Kilpatrick Townsend & Stockton is legal counsel to Madison and Breyer & Associates is legal counsel to KBW.