2023-07-20 11:13:44 ET
Oconee Federal Financial ( NASDAQ: OFED ) will merge with Mutual Savings Bank , a federally-chartered mutual savings lender, with Oconee as the surviving entity, the companies said Thursday.
The combination is expected to boost Oconee's ( OFED ) assets to $633M from $588M at March 31, 2023.
Under terms of the deal, depositors of Mutual will become depositors of Oconee and members of the majority-owned subsidiary of Oconee, MHC.
As part of the transaction, expected to close in Q4 2023 or Q1 2024, OFED 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. The shares are expected to be issued concurrent with the completion of the merger.
The proposed merger is expected to be immediately accretive to OFED's 2023 earnings and thereafter, and immediately accretive to its tangible book value per share. Assuming the merger is completed, Oconee's ( OFED ) capital ratios would continue to exceed “well capitalized” regulatory standards.
Separately, OFED said it has notified Nasdaq of its intent to voluntarily delist its stock from the NASDAQ Capital Market. Furthermore, it plans to withdraw the registration of its stock with the U.S. Securities and Exchange Commission.
OFED slipped 1.7% in late morning trading.
Previously, (Feb. 7) Oconee Federal goes ex dividend tomorrow .
For further details see:
Oconee Federal Financial will merge with Mutual Savings Bank