PRIME BANCORP ANNOUNCES DEFINITIVE AGREEMENT TO PURCHASE
PRIME BANCORP ANNOUNCES DEFINITIVE AGREEMENT TO PURCHASE PHILADELPHIA, Aug. 24 /PRNewswire/ -- Prime Bancorp, Inc.
(NASDAQ-NMS: PSAB) today announced the signing of a definitive agreement to purchase The Bank of Delaware Valley (BDV).
The Bank of Delaware Valley is a state-chartered commercial bank located in Fairless Hills, Pa. The bank is a subsidiary of BMJ Financial Corp. of New Jersey. The bank began business during 1989 and reported assets of $32.5 million as of June 30, 1992. Erwin T. Straw, president and chief executive officer of Prime, commented: "The Bank of Delaware Valley is a key purchase for Prime. It gives us a new stronghold in the lower Bucks County market. The assets of BDV include about $22 million of high quality loans supported by approximately $29 million in deposits. The staff at BDV is another valuable asset provided by this purchase. They are customer service oriented community bankers who have built a profitable franchise in a very short period of time. We expect the bank to immediately contribute profits to Prime. Additionally, we expect to see strong growth from this acquisition for many years into the future." Prime's assets after the purchase will be $400 million for a 9 percent increase. The transaction will be executed as a purchase of the bank's assets and an assumption of the bank's liabilities. Prime will be paying a purchase premium over book of $820,000 with payback expected within three years. The transaction is subject to regulatory approval and other conditions. On June 19, 1992, Prime's board announced a 9.1 percent increase in their quarterly dividend from 11 cents a share to 12 cents a share, payable Aug. 1, 1992, to shareholders of record on July 3. Prime's common stock is listed on NASDAQ under the symbol "PSAB." Its price at the close of business on Aug. 21, 1992, was $11.50 per share. Prime Bancorp is headquartered in Philadelphia. Its principal subsidiary is Prime Savings Bank, fsb, a federally chartered savings bank with nine offices in Philadelphia, Bucks County and Montgomery County. Prime Bancorp had total assets of $366.6 million on June 30, 1992. Deposits are insured by the SAIF fund managed by the FDIC. /delval/ -0- 8/24/92 /CONTACT: Erwin T. Straw, president and CEO of Prime Bancorp, 215-742-5300/ (PSAB) CO: Prime Bancorp, Inc.; The Bank of Delaware Valley ST: Pennsylvania IN: FIN SU: TNM
MK-JS -- PH009 -- 2584 08/24/92 12:25 EDT
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|Date:||Aug 24, 1992|
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