Mid-Southern Bancorp, Inc. (MSVB): History, Ownership, Mission, How It Works & Makes Money

Why should you defintely care about Mid-Southern Bancorp, Inc. (MSVB), a community bank holding company with roots stretching back to 1887? Because its recent story is a textbook example of modern financial strategy, culminating in a definitive dissolution that promises shareholders a cash distribution estimated between $17.45 and $17.75 per share as of September 30, 2025. After reporting a full-year 2024 net loss of $7.1 million, the strategic move to sell its banking assets to Beacon Credit Union and liquidate offers a clear, immediate lesson in value realization for a niche regional player. How did this Salem, Indiana-based institution, with total assets of $226.0 million at the end of 2024, navigate over a century of banking to arrive at this final, decisive payout? You need to understand the mechanics-the history, the ownership, and the core business model-to truly grasp the value proposition of community banking in today's consolidating market.

Mid-Southern Bancorp, Inc. (MSVB) History

You need a clear picture of Mid-Southern Bancorp, Inc.'s (MSVB) roots to understand its current, highly unusual position. The company's story is one of a century-old community bank, Mid-Southern Savings Bank, FSB, that went through a complex public conversion only to decide to liquidate just a few years later, culminating in a significant cash distribution to shareholders in late 2025.

Here's the quick math: The subsidiary bank has been around since 1887, but the publicly traded holding company, Mid-Southern Bancorp, Inc., only existed from 2018 until its planned dissolution in November 2025. That's a short, dramatic run for a public entity.

Given Company's Founding Timeline

Year established

The subsidiary, Mid-Southern Savings Bank, FSB, was originally chartered in 1887 as a mutual savings institution. The holding company, Mid-Southern Bancorp, Inc., was incorporated much later in January 2018.

Original location

Operations have been continuously centered in Salem, Indiana, which remains the principal executive office location.

Founding team members

As a mutual savings bank established in the 19th century, the original founders were not a modern entrepreneurial team but rather a collective of community members (depositors) committed to local financing. The holding company's formation was led by its then-current management team and Board of Directors.

Initial capital/funding

The original mutual bank's capital was sourced from its members' deposits. The holding company's significant capital injection came from its July 2018 Initial Public Offering (IPO) as part of the second-step conversion, which raised net proceeds of approximately $11.5 million to fuel growth and strategic initiatives.

Given Company's Evolution Milestones

Given Company's Transformative Moments

The company's trajectory was defined by two major structural shifts and one final, definitive action. Honestly, the biggest change wasn't a strategic acquisition or a new product line, but the decision to go public, and then the decision to stop being public.

The 2018 mutual-to-stock conversion was a massive capital event. It transformed the bank from a member-owned entity into a shareholder-owned public company, giving it a capital base of approximately $11.5 million in net proceeds to pursue growth. This is a common path for thrifts (savings and loan associations), but it changes everything about risk tolerance and strategic focus. For more on their stated aims during this period, you can check out the Mission Statement, Vision, & Core Values of Mid-Southern Bancorp, Inc. (MSVB).

The most recent and defintely most transformative decision was the move to dissolve the company in 2025. This move effectively monetized the company's assets for shareholders, providing a clear, near-term return. Here's the quick math on the impact:

• The estimated dissolution cash distribution of $17.45 to $17.75 per share, based on financials as of September 30, 2025, provided a final, tangible value to investors.
• The company's stockholders' equity stood at $37.5 million as of March 31, 2025, demonstrating the capital base that underpinned the final distribution.
• This action marked the end of the public entity, Mid-Southern Bancorp, Inc., with the common stock expected to be removed from the OTC Pink Marketplace in November 2025.

This final decision to liquidate, rather than continue navigating the challenging interest rate environment and competitive landscape as a micro-cap bank, represents the ultimate strategic pivot, prioritizing immediate shareholder return over long-term operational growth.

Mid-Southern Bancorp, Inc. (MSVB) Ownership Structure

Mid-Southern Bancorp, Inc. was a publicly-traded savings and loan holding company, but as of November 2025, its structure is defined by its dissolution, not its operations.

The company sold its primary operating asset, Mid-Southern Savings Bank, FSB, to Beacon Credit Union and is now in the process of a formal wind-down and liquidation, converting shareholder equity into a final cash distribution.

Given Company's Current Status

Mid-Southern Bancorp, Inc. is not a traditional operating entity; it is a dissolving entity following the sale of its banking subsidiary in 2025. The company's common stock (MSVB) was expected to be removed from the OTC Pink Marketplace after the record date of November 10, 2025, effectively ending its public trading status. This means the ownership structure is now a claim on the remaining cash and assets as the company winds down its affairs, a process anticipated to take up to two years.

The final value for stockholders of record as of November 10, 2025, was an estimated cash distribution between $17.45 and $17.75 per share, based on the company's financial condition at September 30, 2025. This dissolution represents the ultimate realization of shareholder value from the sale of the bank to Beacon Credit Union.

You can review the strategic rationale for the sale and the company's core principles here: Mission Statement, Vision, & Core Values of Mid-Southern Bancorp, Inc. (MSVB).

Given Company's Ownership Breakdown

The following breakdown reflects the approximate shareholder base that held the common stock immediately prior to the final dissolution payment in November 2025. This structure is what determined who received the final per-share cash consideration.

Here's the quick math: The vast majority-around 70%-of the ownership was held by retail and public investors, so they were the primary beneficiaries of the final cash distribution. Institutional ownership had largely declined as the dissolution process neared completion.

Given Company's Leadership

The leadership team in place as of November 2025 was primarily focused on managing the final stages of the asset sale, regulatory compliance, and the corporate dissolution process, rather than day-to-day banking operations.

• Alexander G. Babey: President and Chief Executive Officer (CEO). He was instrumental in managing the sale of the bank subsidiary and was expected to transition to a consulting role with Beacon Credit Union.
• Robert W. DeRossett: Chief Financial Officer (CFO). He managed the financial reporting and the calculation of the final dissolution payout, which was estimated between $17.45 and $17.75 per share.
• Dana J. Dunbar: Independent Chairman of the Board. The Board of Directors oversaw the entire dissolution process, ensuring fiduciary duty to the shareholders receiving the final payout.

The average tenure of the management team was quite seasoned, which defintely helped with the complex wind-down process.

Mid-Southern Bancorp, Inc. (MSVB) Mission and Values

Mid-Southern Bancorp, Inc.'s mission and values were historically rooted in a deep commitment to its Southern Indiana community, focusing on local service and financial stability. This long-standing community focus now culminates in its final, structured dissolution, which includes an ethical commitment to shareholders and charity.

Mid-Southern Bancorp, Inc.'s Core Purpose

For decades, the company's core purpose was to be a trusted, local financial partner, a role that shaped its conservative lending philosophy and dedication to customer service. This identity is why the bank's operational approach focused heavily on lower-risk residential mortgages, contributing to solid asset quality over time.

Official mission statement

While the specific wording has evolved over its long history, the core mission of Mid-Southern Bancorp, Inc., through its subsidiary Mid-Southern Savings Bank, FSB, traditionally centered on providing quality, essential financial services to individuals and businesses in its Southern Indiana service areas. This meant focusing on:

• Providing a variety of retail deposits to the general public.
• Originating one-to-four family residential real estate mortgage loans.
• Maintaining a conservative lending philosophy for asset quality.

To be fair, the company's final mission in 2025 shifted to a responsible wind-down, ensuring a fair return to shareholders. The estimated cash distribution to shareholders in the dissolution is expected to be between $17.45 and $17.75 per share, payable around November 14, 2025.

Vision statement

The company's vision was to be the preferred financial institution in its local service areas, a goal it pursued by emphasizing three key pillars. It's a simple, clear strategy for a community bank.

• Recognition for exceptional customer service.
• Demonstrating financial stability in the region.
• Active, meaningful community involvement.

This vision is reflected in its historically strong asset quality; for instance, the allowance for credit losses on loans stood at $1.8 million at March 31, 2025, representing 1.4% of total loans, showing a defintely conservative approach to risk. Plus, the company has stated its intent to donate any nominal residual funds after the wind-up to charitable organizations, a final act aligning with its community-focused vision.

Mid-Southern Bancorp, Inc. slogan/tagline

Mid-Southern Savings Bank, FSB, often used slogans that highlighted its local roots and customer-centric approach, most commonly variations of: Mission Statement, Vision, & Core Values of Mid-Southern Bancorp, Inc. (MSVB).

• Your Community Bank.

That's the essence of their brand, really. It cuts straight to the core of their value proposition: local, accessible, and focused on the people they serve. The company's final operational numbers for the quarter ended March 31, 2025, showed net charge-offs of only $3,000, which underscores that conservative, risk-averse, community-bank operating style right up to the end.

Mid-Southern Bancorp, Inc. (MSVB) How It Works

Mid-Southern Bancorp, Inc. operates as a traditional savings and loan holding company, generating revenue primarily by taking local retail deposits and reinvesting those funds into a diversified portfolio of real estate and consumer loans within its Southern Indiana and Louisville, Kentucky, market area. The core mechanism is net interest income, which is the difference between the interest earned on its loan and investment assets and the interest paid on deposits and borrowings.

Given Company's Product/Service Portfolio

The company, through its subsidiary Mid-Southern Savings Bank, FSB, focuses on core banking services for both individuals and small to mid-sized businesses, prioritizing real estate lending as its main asset class.

Given Company's Operational Framework

The operational framework is centered on a community banking model, where local knowledge drives lending decisions and deposit gathering. The holding company structure allows for capital efficiency and regulatory compliance, while the bank subsidiary handles day-to-day operations.

• Funding Loans via Deposits: The Bank's value creation starts with attracting a stable base of retail deposits-totaling approximately $190.9 million as of March 31, 2025-which are generally a lower-cost source of funds than wholesale borrowings.
• Asset Deployment: These funds are primarily deployed into the loan portfolio, which stood at about $127.7 million as of the first quarter of 2025, with the remainder invested in interest-earning assets like securities.
• Geographic Focus: Operations are concentrated in Southern Indiana, including Salem, Mitchell, and Orleans, and extend into the Louisville-Jefferson County Metropolitan Statistical Area (MSA) via loan production offices. This tight focus helps defintely with localized credit underwriting.
• Profit Generation: The primary profit driver is net interest income, which reached $2.3 million in the quarter ended March 31, 2025, after accounting for credit losses.

Here's the quick math: The difference between the average yield on its interest-earning assets (4.96% in Q1 2025) and the average cost of its interest-bearing liabilities (1.32% in Q1 2025) is the core spread that drives profitability. You can see the Mission Statement, Vision, & Core Values of Mid-Southern Bancorp, Inc. (MSVB). for a deeper look at their community commitment.

Given Company's Strategic Advantages

Mid-Southern Bancorp's market success hinges on its localized expertise and its conservative, well-capitalized financial posture, which provides a buffer against economic downturns and interest rate volatility.

• Exceptional Credit Quality: The company maintains a very low-risk profile; non-performing loans were only 0.2% of total loans as of March 31, 2025. This indicates rigorous underwriting and deep knowledge of the local real estate collateral.
• Strong Capital Position: The Bank is considered well-capitalized, operating under the Community Bank Leverage Ratio (CBLR) framework. This regulatory strength provides operational flexibility and investor confidence.
• Local Market Entrenchment: Decades of operation in the Southern Indiana and Louisville area have built strong customer relationships, which translates to a stable, low-cost deposit base that is less susceptible to flight than institutional funding.
• Financial Turnaround: The company reported a net income of $727,000 for the first quarter of 2025, a significant reversal from the net loss reported in the prior year's comparable quarter, demonstrating effective cost management and margin improvement.

Mid-Southern Bancorp, Inc. (MSVB) How It Makes Money

Mid-Southern Bancorp, Inc. historically generated its revenue like a classic community bank: by earning interest on loans and investments, which is the spread between what it paid on deposits and what it charged borrowers. However, as of November 2025, the company is in the final stages of dissolution following the sale of its core banking subsidiary, Mid-Southern Savings Bank, FSB, to Beacon Credit Union.

Mid-Southern Bancorp's Former Revenue Breakdown

Before the sale, the business model was heavily reliant on Net Interest Income (NII), which is typical for a savings and loan holding company. Looking at the first quarter of 2025, NII made up the vast majority of the top line, with noninterest income providing a smaller, but still important, supplement. Here's the quick math based on the Q1 2025 results, where total revenue was approximately $2.3 million (in thousands of USD).

Business Economics

The economic engine of Mid-Southern Bancorp, Inc. was simple: borrow short (customer deposits) and lend long (mortgages and commercial loans). Its subsidiary, Mid-Southern Savings Bank, FSB, focused on originating one-to-four family residential real estate mortgage loans, plus some commercial and multi-family real estate and construction loans in Southern Indiana.

The core pricing strategy centered on the Net Interest Margin (NIM)-the difference between the interest income earned on assets and the interest paid on liabilities. For the quarter ended March 31, 2025, the NIM was 3.26%, showing the profitability of this spread. But, the real economic story now is the liquidation, not the lending. The company is no longer an operating bank; it is a shell holding company distributing cash to shareholders.

The decision to sell the bank to Beacon Credit Union and dissolve the holding company fundamentally changed the economic outlook from a recurring interest-based model to a one-time capital distribution. That's a defintely clean exit for shareholders. You can see more about the final investor landscape in Exploring Mid-Southern Bancorp, Inc. (MSVB) Investor Profile: Who's Buying and Why?

Mid-Southern Bancorp's Financial Performance

The most critical financial data for Mid-Southern Bancorp, Inc. as of November 2025 is the dissolution payout, not the historical performance metrics. The company's financial health is now measured by the cash it is returning to shareholders, not its Return on Assets (ROA) or Efficiency Ratio.

• Dissolution Payout: Shareholders of record as of November 10, 2025, are expected to receive a cash distribution estimated to be between $17.45 and $17.75 per share. This payment is expected around November 14, 2025.
• Final Operating Metrics (Q1 2025): Before the finalization of the sale and dissolution, the company reported a net income of $483,000 for the quarter ended March 31, 2025.
• Asset Quality: Nonaccrual loans (loans not currently accruing interest) to total loans and leases were relatively low at 0.85% as of March 31, 2025, indicating solid asset quality leading into the sale.
• Efficiency Ratio: The efficiency ratio for Q1 2025 was 64.97%, meaning the bank spent almost 65 cents to earn every dollar of revenue, which is a key metric showing operating cost control before the sale.

What this estimate hides is the potential variation in the final payout, which depends on corporate taxation and dissolution costs. Still, the range of $17.45 to $17.75 provides a clear, actionable valuation for investors holding the stock in the final days of its public trading life.

Mid-Southern Bancorp, Inc. (MSVB) Market Position & Future Outlook

Mid-Southern Bancorp, Inc.'s future is defined by its dissolution, not expansion; the company is in the final stages of an orderly liquidation, with the primary financial event being the cash distribution to shareholders. This decision reflects the challenges of operating as a small, independent community bank with only $228.9 million in total assets in a market dominated by larger regional players.

The company announced an estimated dissolution cash distribution of between $17.45 and $17.75 per share, based on its financial condition as of September 30, 2025. For shareholders, this distribution, expected around November 14, 2025, is the final, concrete return on investment, marking the end of the company's operational life.

Competitive Landscape

Operating primarily in southern Indiana and northern Kentucky, Mid-Southern Bancorp, Inc. was a micro-cap institution competing against significantly larger regional banks. Its strategic focus on residential and commercial real estate lending was a niche, but its size made it difficult to scale and absorb rising compliance and technology costs. The table below illustrates the vast difference in scale, using total assets as a proxy for market presence in the regional banking space.

Opportunities & Challenges

Given the liquidation, the traditional concepts of 'Opportunities' and 'Risks' translate directly into shareholder and wind-down considerations. The opportunity is the immediate, tangible cash return, while the risks center on the final costs of winding up the corporate structure.

Industry Position

Mid-Southern Bancorp, Inc.'s position was that of a micro-cap thrift, a small, federally chartered savings bank. Its total assets of $228.9 million place it well below the median total assets for banks in Indiana, which was around $433.19 million in Q2 2025. Honestly, it was a small fish in a big pond, and the economics of that model are defintely tough right now.

• The bank maintained a strong capital position, with a Community Bank Leverage Ratio (CBLR) of 15.6% at December 31, 2025, well above regulatory minimums.
• Its core strength was its asset quality, with non-performing loans at a low 0.2% of total loans as of March 31, 2025.
• The decision to dissolve, rather than seek a merger, suggests the board determined liquidation offered the highest return to shareholders compared to a potential acquisition price.

For a deeper look into the shareholder base that benefited from this final action, see Exploring Mid-Southern Bancorp, Inc. (MSVB) Investor Profile: Who's Buying and Why?