Breaking Down Mid-Southern Bancorp, Inc. (MSVB) Financial Health: Key Insights for Investors

If you're still holding Mid-Southern Bancorp, Inc. (MSVB) stock, the most critical financial insight isn't about their operating performance, but the final cash-out: the company is dissolving, and the ultimate financial health metric is the liquidation payment.

Honestly, the focus has shifted entirely from the $7.1 million net loss the company reported for the year ended December 31, 2024, or the $226.0 million in total assets, to the per-share cash distribution (dissolution payment) you're about to receive.

Based on the company's financial condition as of September 30, 2025, shareholders are currently expected to receive between $17.45 and $17.75 in cash for each share of common stock, with the distribution expected on or about November 14, 2025. This is the whole ballgame. We need to break down what drove that final valuation, particularly how the sale of the bank and the winding-up costs map to that $17.45-$17.75 range, so you can defintely understand what you're getting and why.

Revenue Analysis

You need a clear picture of where Mid-Southern Bancorp, Inc. (MSVB) actually makes its money, and the simple answer is that it's a bank, so its revenue is dominated by the spread between what it earns on loans and what it pays for deposits-its Net Interest Income (NII). The first quarter of 2025 showed a strong rebound in this core business, but you have to look closely at the Noninterest Income to see the real story.

For the quarter ended March 31, 2025, the company reported total operating revenue of approximately $2.55 million. This figure is overwhelmingly driven by lending activities, which is typical for a community bank. The biggest component is Net Interest Income (NII), which came in at $2.3 million after the recapture of credit losses for the quarter. That's a solid number.

• Net Interest Income (NII): $2.3 million (approx. 90.2% of total Q1 2025 revenue).
• Noninterest Income: $249,000 (approx. 9.8% of total Q1 2025 revenue).

The core NII segment saw a year-over-year (YoY) increase of 13.3% in the first quarter of 2025 compared to the same period in 2024. This is a defintely positive trend, driven by a higher average yield on interest-earning assets, which rose to 4.96% in Q1 2025 from 4.21% in Q1 2024, plus a lower cost of interest-bearing liabilities. Here's the quick math on the revenue segments:

The Noninterest Income segment saw the most dramatic change, increasing by $161,000 to $249,000 in Q1 2025. This huge jump wasn't from a sudden surge in service charges, but from a significant accounting difference: the company did not recognize a net loss on the sale of available-for-sale investment securities in Q1 2025, whereas it had a $176,000 loss in Q1 2024. That one-time loss reversal is the primary driver of the Noninterest Income growth, not a fundamental shift in fee-based business.

What this estimate hides is that while the yield on earning assets is up, the average balance of those assets actually decreased to $220.2 million in Q1 2025 from $265.2 million in Q1 2024, primarily due to decreases in loans and investment securities. So, Mid-Southern Bancorp, Inc. is getting a better return on fewer assets. This is a crucial distinction for investors looking for sustainable growth, as it points to rate management success but a shrinking balance sheet. If you want to dive deeper into who is betting on this strategy, check out Exploring Mid-Southern Bancorp, Inc. (MSVB) Investor Profile: Who's Buying and Why?

Profitability Metrics

You need to look past the top-line revenue for a bank like Mid-Southern Bancorp, Inc. (MSVB) and focus on its core profitability engine: the Net Interest Margin (NIM). The latest figures from the first quarter of 2025 (Q1 2025) show a solid turnaround from the prior year's net loss, but the margins tell the real story of operational health.

Mid-Southern Bancorp, Inc. reported Net Income of $727,000 for Q1 2025, a significant swing from a net loss of $33,000 in the same quarter of 2024. This improvement wasn't just luck; it was driven by better asset-liability management, which is a key indicator of a bank's ability to price loans and deposits effectively. Here's the quick math on their core margins:

• Gross Profit Margin (Net Interest Income-based): The bank's Net Interest Income (NII) after credit losses-which is essentially a bank's gross profit-was $2.3 million in Q1 2025. When measured against total revenue of $2.549 million (NII plus noninterest income), this translates to a Gross Profit Margin of approximately 90.2%.
• Operating Profit Margin: After factoring in noninterest expenses (the bank's operating costs), the Operating Profit was approximately $860,000. This gives an Operating Profit Margin of about 33.7%, showing that for every dollar of revenue, 33.7 cents is left before taxes and provisions.
• Net Profit Margin: The final Net Profit Margin for Q1 2025 settled at approximately 28.5% ($727,000 Net Income / $2,549,000 Total Revenue).

A 28.5% Net Profit Margin is defintely a strong result for a community bank. That's a huge jump from a loss position.

Margin Trends and Industry Comparison

The trend in profitability is clearly moving in the right direction. Mid-Southern Bancorp, Inc.'s Net Interest Margin (NIM)-the most critical profitability measure for a traditional bank-increased to 3.96% in Q1 2025, up from 2.90% a year earlier. This is a direct result of their average yield on interest-earning assets rising to 4.96% and their average cost of interest-bearing liabilities dropping to 1.32% over the same period.

To be fair, this performance stacks up very well against the broader sector. The industry average NIM for US Community Banks (those under $10 billion in assets) was around 3.62% in Q2 2025, and the general range for strong-performing community banks is typically 3.5% to 4.5%. MSVB's 3.96% NIM places it comfortably above the average, right in the sweet spot for a well-managed community institution. The table below maps out the key metrics:

Operational Efficiency and Cost Management

The improvement in profitability is deeply rooted in operational efficiency, specifically cost management. Noninterest expense-your operational overhead-decreased by $632,000 in Q1 2025 compared to the same quarter in 2024. This cost-cutting was broad, with major reductions coming from professional fees, compensation, and benefits. Here's the quick breakdown of where the cost savings hit:

• Cut professional fees.
• Reduced compensation and benefits.
• Lowered occupancy and equipment expenses.

This aggressive cost control, coupled with a higher NIM, is what drove the net profit. While the bank's total revenue base of $2.549 million is small, the management team has clearly prioritized tightening the belt and optimizing their funding costs, which is a clear action for maximizing returns. For a deeper look at the balance sheet, you can follow this link: Breaking Down Mid-Southern Bancorp, Inc. (MSVB) Financial Health: Key Insights for Investors.

Debt vs. Equity Structure

You need to understand one thing right away: the traditional debt-to-equity analysis for Mid-Southern Bancorp, Inc. (MSVB) is essentially moot because the company is in the final stages of dissolution following the sale of its banking operations. As of the most recent data, the company is operating with a balance sheet cleared for liquidation, not for financing future growth.

The key takeaway for 2025 is that Mid-Southern Bancorp, Inc. has effectively eliminated all debt to prepare for its final cash distribution to shareholders. This is a unique, low-risk capital structure, but it's a temporary one. The company's financial condition as of September 30, 2025, is the basis for the final payout, which is estimated to be between $17.45 and $17.75 per share.

Zero Debt: A Pre-Liquidation Balance Sheet

The company's debt levels are the clearest indicator of its current status. Based on recent reporting, Mid-Southern Bancorp, Inc. has a Total Debt of approximately $0.00. That's a clean slate. This means there is no short-term or long-term debt to service, which is exactly what you want to see from a company preparing to wind down and distribute cash. This zero-debt position is a direct result of the definitive purchase and assumption agreement with Beacon Credit Union, which acquired substantially all of the bank's assets and liabilities.

Here's the quick math on leverage: The Debt-to-Equity (D/E) ratio for Mid-Southern Bancorp, Inc. is reported as 0% for the most recent quarter in 2025. That's as unleveraged as it gets. To be fair, this is not a sign of incredible management efficiency; it's the financial structure of a company in the process of liquidation.

Financing Strategy: Equity Over Debt in Dissolution

In a typical bank, the balance between debt financing (like deposits, Federal Home Loan Bank advances) and equity funding (retained earnings, common stock) is a core strategic decision. For Mid-Southern Bancorp, Inc. in 2025, that balance has been completely tipped toward equity-or, more accurately, toward the residual cash value of that equity. They are not balancing growth; they are maximizing the cash return to shareholders.

The company's focus shifted from generating returns on assets to preserving capital for the final distribution. The strategic action was the sale, which was essentially a massive refinancing event that converted the bank's operating structure into a pure cash-holding entity. There were no recent debt issuances or credit rating changes because the core business ceased to exist. The final action is the dissolution distribution, expected around November 14, 2025. If you want to dig deeper into who bought the stock during this process, you should check out Exploring Mid-Southern Bancorp, Inc. (MSVB) Investor Profile: Who's Buying and Why?

The key actions for investors right now are simple:

• Confirm your share count and holding method.
• Anticipate the final cash distribution payment.
• Understand the stock is defintely being removed from the OTC Pink Marketplace after November 10, 2025.

Liquidity and Solvency

The core liquidity story for Mid-Southern Bancorp, Inc. (MSVB) is simple and final: the company is in dissolution, meaning its liquidity position is no longer about sustaining operations but about its capacity to make a final cash distribution to shareholders. Based on the financial condition at September 30, 2025, shareholders are expected to receive a final cash payment between $17.45 and $17.75 per share, which is the ultimate measure of the company's solvency.

For a traditional operating company, a strong liquidity position is key, but for MSVB, the focus shifts to the final asset-to-liability reconciliation. The dissolution distribution was scheduled to be paid on or about November 14, 2025, effectively converting shareholder equity into cash at a pre-determined range. This is the most defintely the most important number to watch.

Current and Quick Ratios: A Final Look

Analyzing the Current Ratio (current assets divided by current liabilities) for a bank is always tricky because customer deposits are technically current liabilities. Still, the most recent quarter (MRQ) data suggests a Current Ratio around 2.59x. This is a very strong ratio, well above the 1.0x benchmark, and reflects a balance sheet that was already highly liquid in preparation for the wind-down.

The Quick Ratio (a stricter measure excluding inventory and prepaid expenses) is less relevant here, but the high Current Ratio indicates that the bank held a significant amount of cash and near-cash assets relative to its short-term obligations. This strong position is what enabled the clear, near-term cash payment to shareholders.

Working Capital and Cash Flow Trends

The working capital trend leading up to the dissolution was a controlled contraction, a necessary move for a bank preparing to close its doors. We saw a steady reduction in the balance of interest-bearing liabilities, which decreased to $165.4 million for the first quarter of 2025, down from $200.8 million a year prior. This shows management was actively shedding higher-cost funding sources.

The cash flow statements confirm a healthy, albeit small, ability to generate cash from its remaining operations. Here's the quick math on the operational side:

• Annual Free Cash Flow (FCF) was approximately $2 million.
• This FCF showed a 16.0% year-over-year growth, indicating solid operational efficiency even during the wind-down process.
• Cash Flow from Operating Activities (CFO) for the full year 2024 was $1.54 million.

Positive operating cash flow, plus the strategic reduction in interest-earning assets, meant the company was generating and conserving cash to meet its final obligation, rather than scrambling for liquidity. The increase in stockholders' equity to $37.5 million at March 31, 2025, from $36.9 million at the end of 2024, was a small, final capital cushion before the distribution.

Potential Liquidity Strengths and Final Action

The primary strength was the strategic decision to dissolve, which monetized the company's assets efficiently. The high per-share cash consideration range of $17.45 to $17.75 is the direct result of a clean, well-capitalized wind-down process.

For investors, the only remaining action is to confirm the final distribution amount and payment date. For more context on who was buying into this final stage, you can check out Exploring Mid-Southern Bancorp, Inc. (MSVB) Investor Profile: Who's Buying and Why?

Valuation Analysis

You want to know if Mid-Southern Bancorp, Inc. (MSVB) is a buy, a hold, or a sell right now. The quick answer is that its valuation metrics suggest the stock is trading at a premium compared to its book value, but the picture is complicated by recent negative earnings, so a cautious 'hold' is the most prudent stance.

As of November 2025, Mid-Southern Bancorp, Inc. (MSVB) closed at $17.69 per share, sitting right at its 52-week high of $17.69. That's a strong move, reflecting a 22.00% increase over the last 12 months, which definitely shows positive momentum, but it also means less margin for error. The 52-week low was $13.94. That's a nice run.

Is Mid-Southern Bancorp, Inc. Overvalued or Undervalued?

We need to look past the stock price and dig into the core ratios. For a bank like Mid-Southern Bancorp, Inc., the Price-to-Book (P/B) ratio is often the most telling metric. Here's the quick math on where the valuation sits:

• Price-to-Book (P/B) Ratio: At approximately 1.48, Mid-Southern Bancorp, Inc. is trading above its book value. This is higher than you'd typically want for a regional bank, suggesting investors are willing to pay $1.48 for every dollar of the company's net assets.
• Price-to-Earnings (P/E) Ratio: This is where things get messy. The Trailing Twelve Months (TTM) P/E is around 29.17. However, some recent data shows a negative P/E of -8.03x, indicating the company had negative earnings over the last twelve months, with TTM revenue reported at approximately -$1.16 million. A negative P/E means the company is currently losing money, so the ratio isn't useful for comparison, but it's a huge near-term risk.
• Enterprise Value-to-EBITDA (EV/EBITDA): We can't reliably calculate this for the 2025 fiscal year because the TTM EBITDA is not a reported figure in the public data. This is a common limitation for smaller financial institutions, but it still means we lack one piece of the valuation puzzle.

Honestly, the negative earnings and the high P/B ratio of 1.48 mean you need to be cautious. The market is pricing in a significant turnaround or a favorable resolution to its business structure, which you can read more about in Exploring Mid-Southern Bancorp, Inc. (MSVB) Investor Profile: Who's Buying and Why?

Dividend and Analyst Sentiment

For income-focused investors, the dividend profile is important. Mid-Southern Bancorp, Inc. does pay a dividend, but it's small. The Trailing Twelve Months (TTM) dividend yield is approximately 1.26%, based on a TTM dividend of $0.22 per share. The payout ratio is reported as negative, around -10%, which, again, is a direct result of the negative earnings. They are paying the dividend out of capital or past earnings, not current profit. That's not sustainable long-term.

As for the analyst consensus, there is no formal, widely published Buy, Hold, or Sell rating from major institutional research firms right now. However, some technical analysis suggests a 'hold or accumulate' stance based on recent price action. Given the strong price performance-up 22.00% in the last year-but the weak fundamental earnings, a 'Hold' is the defintely the most realistic assessment.

Risk Factors

You need to know the most critical risk for Mid-Southern Bancorp, Inc. (MSVB) right now: the company is dissolving. All other financial and operational risks are secondary to the strategic risk of the final per-share cash distribution, which is expected to be paid out on or about November 14, 2025.

Honestly, for an investor, this isn't a long-term strategy question; it's a liquidation event analysis. The stock is expected to be removed from the OTC Pink Marketplace shortly after the November 10, 2025, record date, so your focus should be on the final cash value you will receive. What this estimate hides is the final impact of corporate taxation and dissolution costs, which could still cause significant variation in the ultimate payout.

Here's the quick math on the key risks that were driving the business before the final dissolution:

• Strategic Risk: Dissolution Execution. The biggest risk is the final, non-guaranteed per share consideration amount. The company cannot guarantee the exact removal date or the final value, so you need to be prepared for the possibility that the ultimate distribution falls outside any previously announced range.
• Financial Risk: Loan Portfolio Concentration. MSVB is a community bank, and a significant portion of its portfolio carries a greater inherent credit risk than typical owner-occupied residential loans. This includes commercial real estate, multi-family, construction, commercial business, and consumer loans. While non-performing loans were low at $285,000, or 0.2% of total loans, as of March 31, 2025, a downturn in the local commercial property market could quickly change that.
• External Risk: Regulatory and Market Headwinds. Like all financial institutions, MSVB faces legislative and regulatory changes, plus fluctuations in the securities markets. The Office of the Comptroller of the Currency (OCC) flagged in its Spring 2025 Semiannual Risk Perspective that commercial credit risk is increasing due to sustained higher interest rates and general macroeconomic uncertainty.

Operational risks are also elevated across the banking sector. The OCC highlighted that banks face elevated operational risk from the failure to upgrade systems and digitize, which can lead to a loss of market share to competitors offering faster and cheaper payment alternatives. Plus, compliance risk remains high, driven by Bank Secrecy Act (BSA) and anti-money laundering (AML) concerns, defintely compounded by elevated fraud levels across the industry.

The good news is that the bank has maintained a strong capital position, which acts as a major mitigation strategy for these financial risks. The Bank was considered well-capitalized under federal guidelines, reporting a Community Bank Leverage Ratio (CBLR) of 15.6% at December 31, 2025, which is well above the required threshold. This cushion helps absorb unexpected credit losses, even in a dissolving entity. For a deeper dive into the company's performance leading up to this event, you can read our full analysis at Breaking Down Mid-Southern Bancorp, Inc. (MSVB) Financial Health: Key Insights for Investors.

Growth Opportunities

You need to know the real future for Mid-Southern Bancorp, Inc. (MSVB), and honestly, the biggest near-term prospect isn't organic growth-it's the financial outcome of the company's announced dissolution. That changes the entire investment thesis from a community bank play to a liquidation value calculation. This is a critical pivot for your portfolio.

Since the company is in the process of a voluntary dissolution, as announced in late 2025, the standard analysis of future revenue growth is moot. Instead, the primary financial driver is the ultimate per-share consideration in the dissolution payment. The most recent public update in October 2025 detailed an Exploring Mid-Southern Bancorp, Inc. (MSVB) Investor Profile: Who's Buying and Why?, which is where the market is now focused. The final value realization is the only growth prospect that matters now.

Here's the quick math on the company's health leading into this decision, based on the first quarter of the 2025 fiscal year:

• Net Income: $727,000 for Q1 2025, a significant turnaround from a net loss in the prior year period.
• Diluted EPS: $0.26 per diluted share for Q1 2025.
• Net Interest Margin: Increased to 3.96% in Q1 2025, up from 2.90% a year earlier.
• Capital Strength: The Bank's Community Bank Leverage Ratio (CBLR) was a very strong 15.6% as of March 31, 2025, well above the regulatory requirement.

The Competitive Advantage and Strategic Context

To be fair, before the dissolution, Mid-Southern Bancorp, Inc. had a clear, if small-scale, competitive advantage: deep local knowledge and relationship banking. They operated as a well-capitalized community bank in their core market of Salem, Indiana, and the surrounding area, focusing on one-to-four family residential real estate mortgage loans. That local focus is what built the business, but it also limited its scale, which is why the market capitalization sits at about $50 million.

The strategic initiative now is the orderly wind-down and distribution of assets. This is not a growth story, but a return-of-capital event. The strong capital base and improving net interest margin in Q1 2025 suggest the company was in solid financial shape, which should, defintely, translate to a healthier final payout for shareholders.

What this estimate hides is the final cost of the dissolution process and any unforeseen liabilities, which will ultimately reduce the final per-share amount. That's the near-term risk. Your action now is to monitor the dissolution announcements for the final per-share payment range and the record date for that distribution.