Oconee Federal Financial Corp. (NasdaqCM:OFED) entered into a merger agreement to acquire Mutual Savings Bank on July 19, 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 Oconee Federal Financial Corp. 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. Patrick Rogers will become Hartsville Area Manager and Mutual's customer service staff will continue to serve our customers.
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 Oconee Federal Financial Corp. ?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. The merger is expected to increase the Oconee Federal Financial Corp. 's consolidated assets from $588 million at March 31, 2023 to $633 million based on Mutual?s assets as of March 31, 2023. As of July 7, 2023, the total value of the shares to be issued was determined to be $3.5 million. Such value is subject to change and may not be the final value as determined prior to the completion of the merger. The transaction is subject to certain conditions, including the approval by Mutual?s depositors and customary regulatory approvals. The transaction is expected to close in the fourth quarter of 2023 or the first quarter of 2024. Kip Weissman, Ned Quint, and Max Seltzer of Luse Gorman, PC acted as legal counsel to Oconee Federal Savings and Loan Association Oconee Federal Financial Corp. and Oconee Federal, MHC 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.