Attached files
| file | filename |
|---|---|
| 8-K - Polonia Bancorp | v205684_8k.htm |
| EX-99.2 - Polonia Bancorp | v205684_ex99-2.htm |
Exhibit
99.1
Polonia
Bank Acquires Earthstar Bank
Huntingdon
Valley, Pa., December 10, 2010 / -- 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.