Two pieces of news provide a flicker of hope amid the doom and gloom.
HUNTINGDON VALLEY, Pa.--(BUSINESS WIRE)--
Polonia Bancorp (OTCBB:PBCP) announced today it has acquired, through
its subsidiary Polonia Bank, certain of the assets and most of the
deposits of the former Earthstar Bank, through a purchase and assumption
agreement with the Federal Deposit Insurance Corporation (FDIC). The
Pennsylvania Department of Banking declared Earthstar Bank closed today
at 6:00 p.m. and appointed the FDIC as Receiver.
As a result of the acquisition, Polonia Bank will assume approximately
$90 million in deposits and acquire $46 million in loans and $11 million
of investment securities. Earthstar Bank loans will be subject to a
loss-sharing agreement with the FDIC under which the FDIC will provide
80% loss coverage on the covered single family residential and
commercial loans. This transaction is expected to be immediately
accretive to net income and earnings per share and immediately accretive
to book value per share and tangible book value per share.
Depositors of Earthstar will automatically become depositors of Polonia
Bank, and their deposits will continue to be insured by the FDIC up to
$250,000. Customers may access their accounts through automated teller
machine transactions, checks, online banking and debit card
transactions. Earthstar locations normally open on Saturday will open
under regular business hours on Saturday, December 11, 2010, as branches
of Polonia Bank. Remaining locations will open under regular business
hours on Monday, December 13, 2010, as branches of Polonia Bank.
Additionally, checks drawn on Earthstar will continue to be processed,
and loan customers should continue to make their payments as usual.
Anthony J. Szuszczewicz, President & CEO commented, “We are pleased to
welcome customers and employees of Earthstar Bank to the Polonia family.
Customers can be confident that their deposits are safe and readily
accessible. This transaction will strengthen our presence in
Philadelphia, where we currently have four offices, and give us our
first location in Bucks County.”
FinPro, Inc. served as financial advisor for Polonia Bank in this
transaction and Kilpatrick Stockton LLP served as legal counsel.
About Polonia Bancorp:
Polonia Bancorp is the holding company of Polonia Bank, headquartered in
Huntingdon Valley, Pennsylvania. Polonia Bank is a federally chartered
savings bank offering traditional services and products from its main
office in Huntingdon Valley, Pennsylvania and four branch offices in
Philadelphia County, Pennsylvania.
This release contains forward-looking statements regarding the Company's
plans, expectations, goals and outlook for the future. Statements in
this press release that are not historical facts should be considered
forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995. Forward-looking statements of this type
speak only as of the date of this news release. By nature,
forward-looking statements involve inherent risk and uncertainties.
Various factors, including, but not limited to, economic conditions,
credit quality, interest rates, loan demand and changes in the
assumptions used in making the forward-looking statements, could cause
actual results to differ materially from those contemplated by the
forward-looking statements. The Company does not undertake to update any
forward-looking statement, whether written or oral, that may be made
from time to time by or on behalf of the Company.
Polonia BancorpAnthony J. Szuszczewicz, President and CEOPaul
D. Rutkowski, Chief Financial Officer and Treasurer215-938-8800
Source: Polonia Bancorp