Blue Grass Federal to Affiliate with First Mutual Holding Co.

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Aug 16, 2019, 09:00 ET

LAKEWOOD, Ohio, Aug. 16, 2019 /PRNewswire/ -- First Mutual Holding Co. (FMHC), a member-owned holding company headquartered in Ohio, today announced that Blue Grass Federal Savings & Loan Association ("Blue Grass Federal") of Paris, Kentucky, agreed to affiliate with FMHC, pending approval of regulatory agencies and of voting members of Blue Grass Federal.

The affiliation with FMHC will enable Blue Grass Federal to offer its customers a wider range of financial products and services, including small business loans, mobile banking, and an enhanced suite of residential and commercial mortgage loan options. In addition, Blue Grass Federal will benefit from FMHC's state-of-the-art data processing, operational and financial reporting systems.

"We believe strongly in the independent-banking model and in the vital role strong mutual banks play in helping their communities thrive by keeping deposit dollars local, promoting economic development, and supporting local families and organizations," said Thomas J. Fraser, president and CEO of FMHC. "Blue Grass Federal is a perfect fit for FMHC's independent-banking model, where we assist community banks in strengthening their capacity to serve local customers and markets and enhance prospects for balance sheet growth and increased profitability."

"Blue Grass Federal began as a federally chartered mutual savings association in 1959. Over the course of 60 years serving Bourbon County and the surrounding communities, we have added services, grown and developed into one of Kentucky's leading mutual thrifts," said Shanda L. Smith, president & CEO of Blue Grass Federal. "This affiliation provides a way to ensure we continue to prosper, while preserving our mutual form of ownership, including retaining our local Board of Directors and management team as well as our employees. We're enthusiastic about the opportunity to grow our business, so we can perpetuate a healthy, vibrant community right here in Bourbon County and the surrounding areas."

The transaction is expected to close during the fourth quarter of 2019. ProBank Austin served as a financial advisor to FMHC in this transaction.

First Mutual Holding Co.
First Mutual Holding Co. (FMHC) is a member-owned holding company headquartered in Ohio. FMHC provides a structure that allows independent affiliate banks to continue to serve their communities and grow as member-owned institutions. Affiliates of FMHC include First Federal Lakewood (Lakewood, OH) and First Mutual Bank (Belpre, OH). firstmutualholding.com

Blue Grass Federal Savings & Loan Association
Blue Grass Federal is an independent mutual bank based in Paris, Kentucky with $35 million in assets. Blue Grass Federal has provided banking products and services to Bourbon County and the surrounding communities since 1959. bluegrassfederal.com

SOURCE First Mutual Holding Co.