First Federal Lakewood Receives Approval from Members and Regulatory Agencies to Form a Mutual Holding Company Structure

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Jul 17, 2015, 01:30 ET

LAKEWOOD, Ohio, July 17, 2015 /PRNewswire/ -- First Federal Lakewood, the largest independent mutual bank headquartered in Ohio, announced today that it has received the required approvals from a majority of its members and from regulatory agencies (Federal Reserve, OCC and FDIC) to reorganize into a no-stock mutual holding company structure. Over the next several weeks the bank will formally establish First Mutual Holding Co. (FMHC), which is believed to be the first of its kind since the Dodd-Frank Act reformed the financial services industry nearly five years ago.

The holding company structure will help facilitate diversification, including the possible affiliation with smaller mutual banks. It will also provide a platform to capitalize on the bank's financial strength and success, and offer First Federal Lakewood significant long-term operating efficiencies and increased competitiveness.

"We are proud to be an independent mutual bank and have no plans to convert to a stock company," said Thomas J. Fraser, president and chief executive officer. "We believe the formation of FMHC will, in fact, provide the opportunity to strengthen the mutual banking model and enable First Federal Lakewood and other mutual institutions to remain depositor-owned."

Fraser said formation of FMHC will also allow First Federal Lakewood to capitalize on its strong foundation, position the bank for future strategic acquisitions and opportunities, and continue the strong and steady execution of its traditional banking model of serving its communities.

"As an independent mutual bank, we make decisions to benefit our communities and our customers – not shareholders. We're excited to be able to help ensure mutual banking remains a strong and viable banking model," Fraser reiterated.

About First Federal Lakewood

First Federal Lakewood is the largest independent mutual bank headquartered in Ohio with assets of nearly $1.6 billion. With 18 full-service branch locations and 12 mortgage lending offices throughout Ohio, First Federal Lakewood provides deposit, lending, residential mortgage lending, cash management and investment services to individuals and businesses. Since 1935, First Federal Lakewood has been a stable community owned bank committed to deploying funds that foster local economic growth. FFL.net

SOURCE First Federal Lakewood