Mutual Federal and Pulaski Savings Bank plan merger

CHICAGO - Mutual Federal Bank and Pulaski Savings Bank have announced a merger agreement that, pending regulatory and shareholder approvals, is set to finalize in the first quarter of 2025. The combined entity will operate under the Mutual Federal name and is expected to manage assets totaling approximately $150 million, with $19 million in equity.

The merger will see Pulaski Savings Bank integrate into Mutual Federal, with the latter retaining its mutual holding company ownership structure. Post-merger, Pulaski's members will become part of Mutual Federal Bancorp, MHC. The boards of directors of both banks have given their approval for the merger, which now awaits the green light from regulatory authorities as well as member and shareholder consent.

This consolidation aims to enhance customer service and convenience by leveraging the mutual values and community-focused cultures of both institutions. It promises to deliver benefits like increased lending capacity and more office locations while continuing the banks' tradition of trust-based customer relationships and personalized service.

Stephen M. Oksas, President of Mutual Federal, emphasized the shared customer-first approach and respected community presence of both banks. Roger Budny, President of Pulaski, highlighted the merger's potential to provide expanded resources and improved deposit and lending capabilities to their shared market area.

Legal counsel for the merger is provided by Vedder Price P.C. for Mutual Federal entities and Godfrey & Kahn, S.C. for Pulaski Savings Bank. RP Financial LC is offering financial advisory services for the transaction.

Mutual Federal Bank has been serving Chicago's Pilsen neighborhood since 1905, while Pulaski Savings Bank, founded in 1890, operates from Chicago's Bridgeport neighborhood. The merger is based on a press release statement and is expected to bolster the banking presence in Chicago.

InvestingPro Insights

As Mutual Federal Bank prepares to merge with Pulaski Savings Bank, the financial metrics and market performance of Mutual Federal provide a glimpse into the company's current standing. With a market capitalization of $9.51 million, Mutual Federal Bank is navigating the financial sector with a P/E ratio of -3.5, reflecting investor sentiment and market expectations.

Over the past year, Mutual Federal Bank has seen a high return, with a 1 Year Price Total Return of 63.28%. This performance is notable as it showcases the bank's robust growth in a competitive market. In the shorter term, the 1 Month Price Total Return stands at 3.21%, and despite a slight dip over the last six months, the Year-to-Date Price Total Return is impressive at 64.2%.

InvestingPro Tips highlight areas where Mutual Federal Bank shines and where there might be room for improvement. The bank has experienced a high return over the last year, which is a positive sign for potential investors looking at the merger with interest. On the flip side, Mutual Federal Bank suffers from weak gross profit margins and its valuation implies a poor free cash flow yield, which could be areas of focus as the bank moves forward with its merger plans. Additionally, it's worth noting that Mutual Federal Bank does not pay a dividend to shareholders, which might influence the investment decisions of income-focused investors.

For those interested in a deeper dive into Mutual Federal Bank's performance and potential post-merger outlook, there are additional InvestingPro Tips available at https://www.investing.com/pro/MFDB, offering further insights into the bank's financial health and market position.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.