Chicago-based Mutual Federal Bank, Pulaski Savings Bank to merge

Mutual Federal Bank and Pulaski Savings Bank, both based in Chicago, agreed to merge in a deal expected to close in the first quarter of 2025.

Upon the completion of the merger, Pulaski Savings Bank will merge with and into Mutual Federal Bank. Mutual Federal Bank — a wholly owned subsidiary of Mutual Federal Bancorp Inc., which is majority owned by Mutual Federal Bancorp MHC — will continue as the surviving institution and retain its mutual holding company form of ownership.

The combined savings association will have about $150 million in assets, $19 million in equity and two locations in Chicago. Members of Pulaski Savings Bank at the time of the closing of the merger will become members of Mutual Federal Bancorp MHC.

Upon deal close, the combined company will operate two branches in Cook County, Ill., to be ranked No. 74 with a 0.02% share of approximately $443.28 billion in total market deposits, according to S&P Global Market Intelligence data.

S&P Global Market Intelligence valuations for bank and thrift targets in the Midwest between Aug. 30, 2023, and Aug. 30, 2024, averaged 125.62% of book and 132.12% of tangible book and had a median of 17.38x last-12-months earnings, on an aggregate basis.

RP Financial LC provided financial advisory services concerning the deal. Vedder Price PC acted as legal counsel to Mutual Federal Bank, Mutual Federal Bancorp Inc. and Mutual Federal Bancorp MHC. Godfrey & Kahn SC acted as legal counsel to Pulaski Savings Bank.

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