Two depositor-owned banks in Chicago with deep roots in their respective neighborhoods have agreed to merge.
Under terms of a deal announced Friday, the $51 million-asset, one-branch Pulaski Savings Bank, founded 1890 in Chicago's Bridgeport neighborhood, has agreed to be acquired by the $100 million-asset Mutual Federal Bank, which operates a single location in the neighboring Pilsen district. Mutual Federal first opened its doors in 1905.
The transaction is expected to close in the first quarter of 2025, after which the surviving Mutual Federal should be able to offer better service and convenience to customers, according to CEO Stephen Oksas. "This transaction brings together two customer-centric and highly-respected institutions," Oksas said in a press release. Oksas had not responded to a reporter's call at deadline.
Pulaski CEO Roger Budny said in the press release that the combination "will expand resources to the individuals and businesses in our market area."
The combined institution,
Deals between depositor-owned banks don't typically involve financial consideration. Neither Mutual Federal nor Pulaski disclosed the terms of their merger. Pulaski reported net income totaling $267,000 in 2023. Mutual Federal broke even essentially, reporting a profit of $21,000 for the year.
Mutual Federal operates as a mutual holding company. While it sold a 30% ownership stake to investors in 2006, its parent company, Mutual Federal Bancorp, MHC, which controls the other 70%, remains depositor-owned.
