Oconee Federal to Merge With Mutual Savings Bank
July 20 2023 - 8:30AM
Business Wire
Oconee Federal Financial Corp. (NASDAQ: OFED) (“the Company”),
the holding company for Oconee Federal Savings and Loan Association
(“Oconee Federal”), and the majority-owned subsidiary of Oconee
Federal, MHC (“the MHC”), and Mutual Savings Bank (“Mutual”), a
federally-chartered mutual savings bank, today announced the
execution of an agreement pursuant to which Mutual will merge with
and into Oconee Federal with Oconee Federal as the surviving
entity. The merger is expected to increase the Company’s
consolidated assets from $588 million at March 31, 2023 to $633
million based on Mutual’s assets as of March 31, 2023.
Mutual’s office will become a branch office of Oconee Federal.
Under terms of the agreement, depositors of Mutual will become
depositors of Oconee Federal and members of the MHC, and will have
the same rights and privileges in the MHC, as if their accounts had
been established in Oconee Federal on the date established at
Mutual. As part of the transaction, the Company will issue shares
of its common stock to the MHC in an amount equal to the fair value
of Mutual as determined by a third-party appraisal. These shares
are expected to be issued concurrent with the completion of the
merger.
Oconee Federal will establish an Advisory Board and offer
membership on it to the current directors of Mutual. Oconee Federal
and will also support the Hartsville, South Carolina community
through charitable grants from the Oconee Federal Foundation based
on recommendations of the Advisory Board.
The proposed merger is expected to be immediately accretive to
the Company’s earnings in 2023 and thereafter, and immediately
accretive to its tangible book value per share. Upon completion of
the merger, Oconee Federal’s capital ratios are expected to
continue to exceed “well capitalized” regulatory standards.
Curtis Evatt, President and Chief Executive Officer of Oconee
Federal, stated “We are pleased to announce our partnership with
Mutual Savings Bank. We are very familiar with Mutual, its
conservative approach to banking and its deep roots in the
communities it serves. We are very excited about the future of our
combined company.”
Thomas Goodson, Chairman of the Board of Mutual, said, “We’ve
always focused on our community and what our banking clients need.
We feel that this merger is an excellent opportunity to enhance the
services to and convenience for our customers and the communities
we serve. Partnering with Oconee Federal will improve our ability
to offer customers a suite of `state of the art' financial
products. We will continue providing our customers with a high
level of personalized service and local decision-making, while
preserving our values of our community bank culture. Patrick Rogers
will become Hartsville Area Manager and our customer service staff
will continue to serve our customers.”
The transaction is expected to close in the fourth quarter of
2023 or the first quarter of 2024. The transaction is subject to
certain conditions, including the approval by Mutual’s depositors
and customary regulatory approvals.
Oconee Federal has five branch offices located in Oconee and
Pickens counties, South Carolina and three in Stephens and Rabun
counties, Georgia.
Luse Gorman, PC, Washington, D.C., acted as legal counsel to
Oconee Federal and Hinman, Howard & Kattell, LLP acted as legal
counsel to Mutual. Capital Resources Group, Inc. initiated the
transaction and served as financial advisor to Oconee Federal.
Forward-Looking Statements
This news release contains forward-looking statements.
Forward-looking statements are typically identified by words such
as “believe,” “expect,” “anticipate,” “intend,” “outlook,”
“estimate,” “forecast,” “project” and other similar words and
expressions. Forward-looking statements are subject to numerous
assumptions, risks and uncertainties, which change over time.
Forward-looking statements speak only as of the date they are made.
Because forward-looking statements are subject to assumptions and
uncertainties, actual results or future events could differ,
possibly materially, from those that the Company and Oconee Federal
anticipated in its forward-looking statements, and future results
could differ materially from historical performance. Factors that
could cause or contribute to such differences include, but are not
limited to: increased economic pressures; increased competition,
interest rate or legislative or regulatory changes; that completion
of the transaction could take longer than expected; that prior to
the completion of the transaction or thereafter, Oconee Federal’s
and Mutual’s respective businesses may not perform as expected;
that required regulatory, member or other approvals are not
obtained or other closing conditions are not satisfied in a timely
manner or at all; reputational risks and the reaction of the
companies’ customers to the transaction; and diversion of
management time on merger-related issues. Neither the Company and
Oconee Federal nor Mutual assume any duty and do not undertake to
update forward-looking statements.
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version on businesswire.com: https://www.businesswire.com/news/home/20230720387295/en/
For the Company and Oconee Federal: Curtis T. Evatt President
and Chief Executive Officer 864-882-2675
For Mutual: L. Patrick Rogers President and Chief Executive
Officer 843-383-3050
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