Virginia-based Martinsville First Savings Bank (MFSB) has agreed to affiliate with Ohio-based member-owned holding company First Mutual Holding (FMHC).

Financial details of the deal were not divulged.

Through this affiliation, MFSB will be able to offer a suite of financial products and services to its customers.

These include small business loans, mobile banking, and an enhanced suite of residential and commercial lending options.

MFSB will leverage FMHC’s technology, operational and financial expertise, and its scale into expansion opportunities.

MFSB is an independent mutual bank with nearly $40m in assets.

Since 1924, the bank has been providing banking products and services to Martinsville and Henry County and the surrounding communities.

MFSB president and CEO Roger Hornsby said: “This strategic partnership will expand our resources to better serve the individuals and businesses in our market area.

“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, management team and employees.”

FMHC allows independent affiliate banks to serve their communities with financial services.

The affiliates of FMHC include First Federal Lakewood First Mutual Bank, Blue Grass Federal Savings and Loan, and Warsaw Federal Savings and Loan.

FMHC president and CEO Thomas Fraser said: “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 organisations.

“Martinsville First is a perfect fit for FMHC’s independent-banking model, where we assist community banks to serve local customers and markets, and enhance prospects for balance sheet growth and increased profitability.”

Subject to regulatory and MFSB’s voting members’ approval, the transaction is expected to complete in the first quarter of 2021.