Monroe Federal Bancorp Reports $515,000 Net Loss for Fiscal Year Ending March 31, 2026

Monroe Federal Bancorp, Inc. reported a net loss of $515,000 for the fiscal year ending March 31, 2026, a decline from a loss of $327,000 in the previous year. The company's total interest income increased by 5.2% to $6.2 million, driven primarily by a rise in interest from loans, which grew by 7.7% to $5.6 million. However, total interest expense also rose by 9.6% to $2.4 million, leading to a modest increase in net interest income of 2.5% to $3.7 million. The provision for credit losses saw a significant recovery, decreasing to a recovery of $57,000 from a provision of $15,000 in the prior year, reflecting improved asset quality.

In terms of operational metrics, Monroe Federal's total assets decreased by 1.3% to $142.4 million, primarily due to a $4.7 million drop in available-for-sale investment securities. However, net loans increased by 3.3% to $110.5 million, with notable growth in commercial real estate loans, which rose by 12.8% to $27.3 million, and commercial and industrial loans, which surged by 46.5% to $6.3 million. The company also reported a decrease in nonperforming loans, which fell to $250,000, or 0.2% of total assets, down from $629,000, or 0.4%, the previous year.

Strategically, Monroe Federal has focused on diversifying its loan portfolio while maintaining a strong emphasis on residential mortgage lending, which constituted 60.9% of total loans at the end of the fiscal year. The company has developed the infrastructure to begin selling one-to-four family residential mortgage loans in the upcoming fiscal year, a move aimed at mitigating interest rate risk. Additionally, the bank's deposits increased by 3.1% to $124.5 million, with a notable rise in certificates of deposit, which grew by 22.2% to $41.3 million.

Looking ahead, Monroe Federal aims to continue its growth trajectory by enhancing its core deposit base and expanding its commercial lending activities. The bank's management believes that its current capital position, categorized as well-capitalized under regulatory guidelines, will support its strategic initiatives. The company is also committed to maintaining strong asset quality through conservative underwriting practices and effective credit monitoring. As of March 31, 2026, Monroe Federal's capital ratios remain robust, with a community bank leverage ratio of 9.6%, indicating a solid foundation for future growth.