CHICAGO and WORTH, Ill., Sept. 30, 2016 /PRNewswire/ -- Hoyne Savings Bank, an Illinois-chartered savings bank ("Hoyne") and wholly-owned subsidiary of Hoyne Financial Corporation, which in turn is wholly owned by Hoyne Savings, MHC, and Prospect Federal Savings Bank, a federally-chartered mutual savings bank ("Prospect"), today announced plans to merge and create a new, larger savings bank to provide even greater service and convenience to customers. After the merger, the combined savings bank will have assets of approximately $500 million and $86 million in equity and operate a network of eight branches throughout the Chicagoland area.
Upon the successful completion of the merger, Prospect will merge with and into Hoyne, and Hoyne will continue as the surviving institution and will retain its mutual holding company form of ownership. The members of Prospect at the time of consummation of the merger will become members of Hoyne Savings, MHC. The boards of directors of Prospect and each of the Hoyne entities have approved the merger. The merger is subject to regulatory approval, the approval of the members of each of Prospect and Hoyne Savings, MHC, and is expected to close as early as the first quarter of 2017.
This partnership will combine two mutual organizations with very similar cultures and core values. The merger will also allow the combined savings bank to offer enhanced benefits such as increased lending capacity, a larger network of branches and ATMs, and continue each bank's legacy of providing customer service built on relationships of trust, integrity and personalized service. This merger represents a strong financial, strategic and cultural fit and bolsters both banks' capacity and presence in the Chicago marketplace.
"This transaction has been structured as a merger of equals as both of our institutions are strong, well-capitalized, customer-centric and highly-respected institutions," said Ralph Carstensen, President and CEO of Hoyne. "Both Hoyne and Prospect have a similar culture and take pride in our long traditions of outstanding customer service and community involvement."
"This strategic partnership will expand resources to the individuals and businesses in our market area. Hoyne and Prospect remain committed to create superior and lasting banking relationships. In addition, this merger will also expand the bank's deposit and lending capabilities, allowing us to better serve our customers," said Steven F. Rosenbaum, President and CEO of Prospect.
Mr. Carstensen will serve as the CEO of Hoyne, Hoyne Financial Corporation and Hoyne Savings, MHC following the merger, and Mr. Rosenbaum will serve as President and Chief Operating Officer of these entities. The boards of directors of the continuing entities will consist of five (5) current members of Hoyne's board and four (4) current members of Prospect's board.
The law firm of Silver, Freedman, Taff & Tiernan LLP acted as legal counsel for Hoyne Savings Bank. The law firm of Vedder Price P.C. acted as legal counsel for Prospect Federal Savings Bank. Financial advisory services for the transaction were provided by RP Financial LC.
Hoyne Savings Bank:
Founded in 1887, Hoyne Savings Bank is an Illinois-chartered savings bank serving the residents, businesses and communities of the North Side of Chicago from offices in Chicago, Wheeling and Woodstock. For more information, visit online at www.hoyne.com or call 773-283-4100.
Prospect Federal Savings Bank:
Prospect Federal Savings Bank, founded in 1909, is a federally chartered mutual savings bank serving the residents, businesses and communities of the Southwest area of Chicagoland with offices in Worth, Oak Lawn and the Southwest side of Chicago. For more information about Prospect Federal Savings Bank or any of its products and services, please call 708-361-8000 or visit the website at www.prospectfederal.com.
SOURCE Prospect Federal Savings Bank; Vedder Price