Polonia Bancorp, holding company of Pennsylvania-based Polonia Bank (Nasdaq: PBNY), today announced Polonia Bank has acquired certain assets and a majority of the deposits of former Earthstar Bank.
The acquisition was executed through a purchase and assumption agreement with the Federal Deposit Corp. (FDIC). Per the agreement, Polonia Bank will acquire roughly $90 million in deposits; $46 million in loans; and $11 million of investment securities.
Earthstar Bank will remain in a loss-sharing agreement with the FDIC, which will insure the loans at 80 percent for covered single family residential and commercial loans.
Polonia Bancorp said the acquisition is expected to immediately contribute to net income and earnings per share, accretive to book value per share.
In today’s press release, Anthony J. Szuszczewicz, president and CEO welcomed Earthstar Bank customers and noted the value of the acquisition for Polonia Bank, saying “… This transaction will strengthen our presence in Philadelphia, where we currently have four offices, and give us our first location in Bucks County.”
For more information, visit www.providentbanking.com