First Mutual Holding Co. Completes Private Placement of $10 Million of Subordinated Notes

LAKEWOOD, Ohio, Feb. 12, 2018 /PRNewswire/ -- First Mutual Holding Co. (the "Company"), the no-stock mutual holding company for First Federal Savings and Loan Association of Lakewood ("First Federal Lakewood") and First Mutual Bank, FSB ("First Mutual Bank"), announced today the completion of its private placement of $10.0 million in fixed-to-floating rate subordinated notes due 2028 (the "Notes").  The Notes bear a fixed rate of 5.50% for the first five years and will reset quarterly thereafter to the then current three-month LIBOR rate plus 294 basis points. 

The Company intends to use the net proceeds from the offering for general corporate purposes, including improving the liquidity position at the holding company and providing capital to its primary bank subsidiary.  The Notes are intended to qualify as Tier 2 capital for the Company for regulatory purposes and the portion that the Company contributes to First Federal Lakewood will qualify as Tier 1 capital for First Federal Lakewood.

Sandler O'Neill + Partners, L.P. served as the sole placement agent for the offering and was advised by Hogan Lovells US LLP.  The Company was advised by Vorys, Sater, Seymour and Pease LLP.

This press release is for informational purposes only and shall not constitute an offer to sell, or the solicitation of an offer to buy the Notes nor shall there by any sale in any jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.  The indebtedness evidenced by the Notes is not a deposit and is not insured by the Federal Deposit Insurance Corporation (the "FDIC") or any other government agency or fund.  

About First Mutual Holding Co.

First Mutual Holding Co. is the no-stock mutual holding company for First Federal Lakewood and First Mutual Bank.  First Federal Lakewood is the largest independent depositor-owned bank headquartered in Ohio with eighteen full-service branch locations and fourteen mortgage lending offices throughout Ohio.  First Mutual Bank is a result of the Company's acquisition of Doolin Security Savings Bank, FSB in January 2018.  Concurrent with the acquisition of Doolin Security Savings Bank, FSB, Belpre Savings Bank, acquired by the Company in November 2016, merged into First Mutual Bank.  First Mutual Bank operates four branches, with one branch located in Belpre, Ohio and three branches located in West Virginia.  firstmutualholding.com.

This press release contains forward-looking statements within the meaning of the Securities and Exchange Act of 1934, as amended, including statements of goals, intentions, and expectations as to future trends, plans, events or results of Company operations and policies and regarding general economic conditions.  In some cases, forward-looking statements can be identified by use of words such as "may," "will," "anticipates," "believes," "expects," "plans," "estimates," "potential," "continue," "should," and similar words or phrases.  These statements are based upon current and anticipated economic conditions, nationally and in the Company's market, interest rates and interest rate policy, competitive factors, and other conditions which by their nature, are not susceptible to accurate forecast, and are subject to significant uncertainty.  Because of these uncertainties and the assumptions on which this discussion and the forward-looking statements are based, actual future operations and results may differ materially from those indicated herein.  Readers are cautioned against placing undue reliance on any such forward-looking statements. The Company's past results are not necessarily indicative of future performance.

SOURCE First Mutual Holding Co.