MUTUAL FEDERAL BANK AND PULASKI SAVINGS BANK ANNOUNCE AGREEMENT TO MERGE

Rhea-AI Summary

Mutual Federal Bank (OTC: MFDB) and Pulaski Savings Bank have announced plans to merge, creating a combined savings association with $150 million in assets and $19 million in equity. The merger, expected to close in Q1 2025, will result in a two-location operation in Chicago. Pulaski will merge into Mutual Federal, which will retain its mutual holding company structure. The merger aims to enhance customer service, increase lending capacity, and strengthen the bank's presence in the Chicago market. Both banks emphasize their shared values of customer-centric service and community involvement. The transaction is subject to regulatory approval and customary member and shareholder approvals.

Positive

• Combined assets of $150 million and $19 million in equity
• Increased lending capacity and expanded office locations
• Enhanced presence in the Chicago marketplace
• Potential for improved customer service and expanded resources

Negative

• Potential integration challenges during merger process
• Regulatory approval and shareholder approvals still pending

CHICAGO, Aug. 30, 2024 /PRNewswire/ -- Mutual Federal Bank, a federally-chartered savings association ("Mutual Federal") and wholly-owned subsidiary of Mutual Federal Bancorp, Inc. (OTC: MFDB), which in turn is majority owned by Mutual Federal Bancorp, MHC, and Pulaski Savings Bank, an Illinois-chartered mutual savings bank ("Pulaski"), today announced plans to merge. Following completion of the merger, Mutual Federal, as the surviving institution, will be positioned to provide greater service and convenience to its customers and the customers of Pulaski. After the merger, the combined savings association will have assets of approximately $150 million and $19 million in equity and operate from two locations in Chicago.

Upon the successful completion of the merger, Pulaski will merge with and into Mutual Federal, and Mutual Federal will continue as the surviving institution and will retain its mutual holding company form of ownership. The members of Pulaski at the time of consummation of the merger will become members of Mutual Federal Bancorp, MHC. The boards of directors of Pulaski and each of the Mutual Federal entities have approved the merger. The merger is subject to regulatory approval, customary member and shareholder approvals, and is expected to close in the first quarter of 2025.

This partnership will combine two mutual organizations with strong cultures and core values. The merger will also allow the combined savings association to offer enhanced benefits such as increased lending capacity and office locations, and continue each bank's legacy of providing customer service built on relationships of trust, integrity and personalized service. This merger represents a strong financial, strategic and cultural fit and bolsters the resulting bank's capacity and presence in the Chicago marketplace.

"This transaction brings together two customer-centric and highly-respected institutions," said Stephen M. Oksas, President of Mutual Federal. "Both Mutual Federal and Pulaski have a similar culture and take pride in our long traditions of outstanding customer service and community involvement."

"This strategic partnership will expand resources to the individuals and businesses in our market area. In addition, this merger will result in a combined bank with greater deposit and lending capabilities, allowing us to better serve our customers," said Roger Budny, President of Pulaski.

The law firm of Vedder Price P.C. acted as legal counsel for Mutual Federal Bank, Mutual Federal Bancorp, Inc. and Mutual Federal Bancorp, MHC. The law firm of Godfrey & Kahn, S.C. acted as legal counsel for Pulaski Savings Bank. Financial advisory services in connection with the transaction were provided by RP Financial LC.

Mutual Federal Bank:

Mutual Federal Bank, founded in 1905, is a federally-chartered savings association serving the residents, businesses and communities of Chicago from its main office in Chicago's Pilsen neighborhood. For more information about Mutual Federal Bank or any of its products and services, please visit us online at www.mutualfederalbank.com. 

Pulaski Savings Bank:

Pulaski Savings Bank, founded in 1890, is an Illinois-chartered mutual savings bank serving the residents, businesses and communities of Chicago from its main office in Chicago's Bridgeport neighborhood. For more information about Pulaski Savings Bank or any of its products and services, please visit our website at www.pulaskisavings.com.

Forward-Looking Statements:

This press release contains forward-looking statements within the meaning of the U.S. federal securities laws. Forward-looking statements include, without limitation, statements concerning plans, estimates, calculations, forecasts and projections with respect to the anticipated future performance of Mutual Federal. These statements are often, but not always, made through the use of words or phrases such as ''may'', ''might'', ''should'', ''could'', ''predict'', ''potential'', ''believe'', ''expect'', ''continue'', ''will'', ''anticipate'', ''seek'', ''estimate'', ''intend'', ''plan'', ''projection'', ''would'', ''annualized'', "target" and ''outlook'', or the negative version of those words or other comparable words or phrases of a future or forward-looking nature. Forward-looking statements involve estimates and known and unknown risks, and reflect various assumptions and involve elements of subjective judgement and analysis, which may or may not prove to be correct, and which are subject to uncertainties and contingencies outside the control of Mutual Federal and its respective affiliates, directors, employees and other representatives, which could cause actual results to differ materially from those presented in this communication. No representations, warranties or guarantees are or will be made by Mutual Federal as to the reliability, accuracy or completeness of any forward-looking statements contained in this communication or that such forward-looking statements are or will remain based on reasonable assumptions. You should not place undue reliance on any forward-looking statements contained in this communication. Any forward-looking statement speaks only as of the date on which it is made, and Mutual Federal undertakes no obligation to update any forward-looking statement, whether to reflect events or circumstances after the date on which the statement is made, to reflect new information or the occurrence of unanticipated events, or otherwise unless required under the federal securities laws.

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SOURCE Mutual Federal Bank

FAQ

What is the expected closing date for the merger between Mutual Federal Bank (MFDB) and Pulaski Savings Bank?

The merger between Mutual Federal Bank (MFDB) and Pulaski Savings Bank is expected to close in the first quarter of 2025, subject to regulatory and shareholder approvals.

How will the merger affect the assets and equity of Mutual Federal Bank (MFDB)?

After the merger, the combined savings association will have assets of approximately $150 million and $19 million in equity, strengthening Mutual Federal Bank's (MFDB) financial position.

Will the merger between Mutual Federal Bank (MFDB) and Pulaski Savings Bank result in branch closures?

The merger announcement states that the combined entity will operate from two locations in Chicago, suggesting no immediate plans for branch closures.

What benefits are expected from the merger of Mutual Federal Bank (MFDB) and Pulaski Savings Bank?

The merger is expected to provide increased lending capacity, expanded office locations, enhanced customer service, and a stronger presence in the Chicago marketplace for the combined entity.