Chicago-based Mutual Federal Bancorp announced Jan. 10 that its subsidiary Mutual Federal Bank and fellow Chicago-based Pulaski Savings Bank called off their planned merger.
The merger was announced in late August and had been expected to be completed in the first quarter of this year. The combined savings association was expected to have $150 million in assets and $19 million in equity with two Chicago locations.
The $49 million Pulaski Savings Bank was founded in 1980 in the Bridgeport community of Chicago. The $92 million Mutual Federal Bank was founded in 1905.
The termination of the deal came a little more than one week after Atlanta Postal Credit Union called off its planned acquisition of $878 million Affinity Bank.
The administration of President Joe Biden has taken a relatively tough approach to bank mergers and acquisitions, leading to regulatory delays and more deals being called off. The incoming administration of President-Elect Donald Trump is expected to usher in a friendlier bank M&A environment.