Monroe Federal Bancorp Reports Net Loss of $327,000 for Fiscal Year Ending March 31, 2025

Monroe Federal Bancorp, Inc. reported a net loss of $327,000 for the fiscal year ending March 31, 2025, a significant decline from a net income of $60,000 in the previous year. The company's total interest income increased by 3.7% to $5.9 million, driven primarily by a rise in interest on loans, which grew by 4.9% to $5.2 million. However, total interest expense also rose by 12.7% to $2.2 million, leading to a slight decrease in net interest income to $3.7 million. The provision for credit losses increased to $15,000 from a recovery of $143,000 in the prior year, reflecting a more cautious approach to potential loan defaults.

In terms of financial position, Monroe Federal Bancorp's total assets decreased by 7.1% to $144.3 million, primarily due to a significant drop in cash and cash equivalents, which fell by 80.4% to $2.1 million. The company's loan portfolio remained relatively stable, with net loans totaling $107.0 million, a slight decrease of 0.8% from the previous year. The composition of the loan portfolio included $69.9 million in one- to four-family residential mortgage loans, which accounted for 64.6% of total loans, and $24.2 million in commercial real estate loans, representing 22.4% of total loans.

Strategically, Monroe Federal Bancorp is focusing on enhancing its loan portfolio by increasing originations of commercial real estate and commercial and industrial loans while maintaining its core emphasis on residential mortgage lending. The company is also developing the infrastructure necessary to sell one- to four-family residential mortgage loans to mitigate interest rate risk exposure. As of March 31, 2025, the company had 23 full-time employees and 4 part-time employees, with no significant changes in headcount from the previous year.

The company’s deposit base decreased by 15.1% to $120.7 million, attributed to a significant withdrawal from a major commercial customer account. Despite this, Monroe Federal Bancorp aims to grow its core deposits, which totaled $86.9 million, or 72% of total deposits, by enhancing its product offerings and marketing efforts. The company’s capital position improved, with stockholders' equity increasing by 40.9% to $12.1 million, bolstered by a successful stock offering that raised $5.3 million.

Looking ahead, Monroe Federal Bancorp plans to continue its focus on prudent growth and diversification of its loan portfolio while maintaining strong asset quality through conservative underwriting practices. The company is also committed to enhancing its community-oriented services to build a loyal customer base, which it views as essential for long-term success.