Virginia-based Martinsville First Savings Bank agreed to affiliate with Ohio-based First Mutual Holding Co.

Martinsville First Savings Bank intends to leverage First Mutual Holding's scale into expansion opportunities. Roger Hornsby, president and CEO of Martinsville First Savings Bank, said the affiliation will ensure that the bank continues to prosper while preserving its mutual form of ownership, including retaining its board, management team and employees.

The transaction is subject to the approval of regulators and the voting members of Martinsville First Savings Bank. It is expected to close during the first quarter of 2021.

S&P Global Market Intelligence valuations for bank and thrift targets in the Southeast region between Sept. 11, 2019, and Sept. 11, 2020, averaged 150.05% of book and 158.86% of tangible book and had a median of 17.32x last-12-months earnings, on an aggregate basis.

Martinsville First Savings Bank has about $40 million in assets.

According to S&P Global Market Intelligence data, the combined company will operate one branch in Virginia to be ranked No. 104 with a 0.01% share of about $380.38 billion in total market deposits, will operate 24 branches in Ohio to be ranked No. 22 with a 0.37% share of approximately $455.42 billion in total market deposits, will operate one branch in Kentucky to be ranked No. 143 with a 0.03% share of roughly $98.66 billion in total market deposits and will operate three branches in West Virginia to be ranked No. 61 with a 0.12% share of approximately $38.88 billion in total market deposits.

ProBank Austin served as a financial adviser to First Mutual Holding in the transaction. Vorys Sater Seymour and Pease LLP acted as legal adviser to First Mutual Holding, while Luse Gorman PC served as legal adviser to Martinsville First Savings Bank.

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