Huntingdon Valley’s Polonia Bancorp Acquired by Prudential for $38.1M
Prudential Bancorp has agreed to acquire Huntingdon Valley-based Polonia Bancorp for $38.1 million in a merger that will increase its number of branches to 11 and boost it to $850 million in assets, writes Jeff Blumenthal for the Philadelphia Business Journal.
According to the terms of the agreement, which is expected to close in the fourth quarter, the South Philadelphia bank will acquire 100 percent of the outstanding shares of Polonia in exchange for a mixture of cash and common stock resulting in Polonia’s shareholders receiving $11.28 per share.
In addition to Polonia’s headquarters, Prudential will be gaining branches in Port Richmond, Holmesburg, Bridesburg, and Spring Garden Street in Center City. While Prudential did not mention the closure of any locations, it expects to realize more than 50 percent in cost savings on operations, which could translate into significant cuts in personnel, vendors, and real estate.
Both banks are currently flush with cash thanks to their recent completions of second-step conversions from mutual holding companies to all-stock corporations. Prudential said the deal will help it maintain a strong capital base available for future use while leveraging its existing capital base.
“Acquiring Polonia is a very beneficial transaction that will enable us to increase the value of the franchise for the benefit of our shareholders,” said Dennis Pollack, CEO of Prudential.
Read more about the merger in the Philadelphia Business Journal by clicking here.
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