Warsaw Federal Savings and Loan Association, an independent mutual bank based in Cincinnati, agreed to affiliate with Lakewood, Ohio-based First Mutual Holding Co.
Warsaw Federal will continue to be a 100% mutual bank and operate under the Warsaw Federal name and charter, with the same management team and employees, President Richard Flynn said in a statement.
The deal is subject to approvals of regulators and Warsaw Federal members, and is expected to close during the first quarter of 2020.
S&P Global Market Intelligence valuations for bank and thrift targets in the Midwest region between Sept. 27, 2018, and Sept. 27, 2019, averaged 155.40% of book and 159.47% of tangible book and had a median of 16.73x last-12-months earnings, on an aggregate basis.
The combined company will operate 23 branches in Ohio, which will be ranked no. 20 with a 0.46% share of approximately $369.17 billion in total market deposits. It will also operate three branches in West Virginia, which will be ranked no. 64 with a 0.13% share of approximately $34.23 billion in total market deposits.
As of June 30, First Mutual Holding had total assets of $2.01 billion, while Warsaw Federal had total assets of $56.0 million, according to S&P Global Market Intelligence.
ProBank Austin served as financial adviser and Luse Gorman PC served as legal counsel to First Mutual Holding in connection with the transaction. Dinsmore & Shohl LLP served as legal counsel to Warsaw Federal.
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