Chicago’s financial landscape set to transform as Mutual Federal Bank and Pulaski Savings Bank announce merger

Mutual Federal Bank, a prominent federally-chartered savings association, and Pulaski Savings Bank, an esteemed Illinois-chartered mutual savings bank, have jointly announced a strategic merger that is set to reshape the banking landscape in Chicago. The merger, anticipated to finalize in the first quarter of 2025, will see Mutual Federal Bank emerge as the surviving institution, significantly expanding its footprint and capabilities within the city.

Merger Details: Expansion and Impact

Upon completion of the merger, the consolidated entity will boast approximately $150 million in assets and $19 million in equity. The combined bank will operate from two established locations in Chicago, one in the Pilsen neighborhood and the other in Bridgeport. This merger will not only enhance the bank’s lending and deposit capabilities but also provide increased convenience to a broader customer base.

Mutual Federal Bank, founded in 1905, and Pulaski Savings Bank, established in 1890, share a deep-rooted commitment to community service and customer-centric banking. This merger is poised to leverage their collective strengths, offering an expanded range of financial services while maintaining their shared values of trust and personalized service.

Stephen M. Oksas, President of Mutual Federal Bank, emphasized the strategic alignment between the two institutions. “This merger brings together two highly respected and customer-focused banks with a shared heritage of community involvement and exceptional service. We are excited about the opportunities this partnership will create for our customers and the Chicago community.”

Roger Budny, President of Pulaski Savings Bank, highlighted the benefits of the merger for the bank’s customers and the local market. “By combining our resources, we will enhance our ability to serve both individuals and businesses. The merger will result in a stronger financial institution with increased capacity to meet the needs of our customers.”

Strategic Fit and Community Benefits

The merger represents a strategic alignment of two institutions with complementary strengths. Mutual Federal Bank’s focus on community engagement and personalized banking will be augmented by Pulaski Savings Bank’s extensive experience and local presence. Together, they will offer a broader array of financial products and services, including expanded lending options and more accessible banking locations.

Additionally, the merger will bolster the combined institution’s ability to participate in community development initiatives and support local economic growth. Both banks have a long history of involvement in community projects and charitable activities, and this merger will enhance their capacity to make a positive impact in the Chicago area.

Legal and Financial Advisory

The legal aspects of the merger are being managed by two prominent law firms. Vedder Price P.C. is representing Mutual Federal Bank, Mutual Federal Bancorp, Inc., and Mutual Federal Bancorp, MHC, while Godfrey & Kahn, S.C. is providing legal counsel for Pulaski Savings Bank. Financial advisory services are being provided by RP Financial LC, which is assisting in the valuation and structuring of the transaction.

Institutional Background and Legacy

Mutual Federal Bank, with its headquarters in Chicago’s Pilsen neighborhood, has been serving the community for over a century. Known for its strong customer relationships and dedication to local businesses, the bank has established itself as a cornerstone of community banking in Chicago.

Pulaski Savings Bank, located in the Bridgeport neighborhood, has been a trusted financial partner since 1890. Its long-standing commitment to customer service and community involvement has made it a key player in the local banking sector.

Future Outlook

The merger between Mutual Federal Bank and Pulaski Savings Bank is expected to create a more robust financial institution capable of providing enhanced services and support to the Chicago community. With a focus on expanding its service offerings and increasing its community impact, the newly formed entity will be well-positioned to meet the evolving needs of its customers.