FIRST FEDERAL SAVINGS BANK SIGNS AGREEMENT TO ACQUIRE THE SALT LAKE OPERATIONS OF HERITAGE SAVINGS BANK
FIRST FEDERAL SAVINGS BANK SIGNS AGREEMENT TO ACQUIRE
THE SALT LAKE OPERATIONS OF HERITAGE SAVINGS BANK
SALT LAKE CITY, April 21 /PRNewswire/ -- First Federal Savings Bank (NASDAQ: FFUT) announced today it has signed a definitive agreement with First Charter Savings Bank, dba Heritage Savings Bank, located in St. George, Utah, to acquire Heritage's Salt Lake operations.
Gerald R. Christensen, chairman of First Federal Savings Bank, said the acquisition consists of two Heritage Savings operations located at the ZCMI Center and the Olympus Hills Shopping Center. The ZCMI Center branch will be closed, and the accounts will be moved to First Federal's nearby Eagle Gate branch office. The Heritage Savings' branch in the Olympus Hills Shopping Center will remain open as a First Federal branch office. Once the acquisition is finalized, former Heritage customers will be able to conduct their banking transactions at any First Federal office, and existing First Federal customers will have an additional branch office for their convenience.
Christensen also said that the acquisition of these profitable branches should have a positive impact on earnings and will give First Federal customers an additional location for excellent service. This will be the fourth acquisition by First Federal during the past 24 months.
H. Brent Beesley, chairman of Heritage Savings Bank said, "Although Heritage Savings Bank is strong and profitable, we consider our Salt Lake customers and employees will be better served by First Federal's wider variety of lending and deposit products and services and by its much larger branch network." Heritage will continue its operations in St. George, where Heritage was established 75 years ago.
The transaction requires regulatory approval. It is a cash transaction where First Federal Savings Bank will assume approximately $27 million of deposits and receive a similar amount of cash. A nominal premium will be paid by First Federal for the deposits. After the transaction, First Federal will continue to exceed all regulatory capital requirements. First Federal's assets following this acquisition will be approximately $380 million. This acquisition is expected to close in August 1992.
/CONTACT: Allen C. Barbieri of First Federal Savings Bank, 801-366-2205/
(FFUT) CO: First Federal Savings Bank; First Charter Savings Bank, dba