FirstFed America Inc., an $800 million savings and loan institution based in Honolulu, has completed its $2.4 million acquisition of First Federal Savings and Loan Association of Logan.
The affiliation with FirstFed doubles the Utah institution's capital and opens up opportunities for growth, said Fred R. Hunsaker, president of the 50-year-old First Federal of Logan."This is a great opportunity for us to increase our financial resources while retaining our separate identity," he said.
The acquistition involved the issuance and sale of $2.4 million of First Federal of Logan stock to FirstFed America, whose stock is traded on the Amercian Stock Exchange.
First Federal of Logan's loan production offices in Ogden and Salt Lake City have had their name changed to First Federal Savings and Loan of America. Hunsaker said other changes expected as a result of its becoming part of the Hawaii-based savings and loan are new products the $37 million First Federal couldn't afford to implement.
"We needed the affiliation with a large company with the resources into research and development of new products, so we could grow," he said.
FirstFed, which had been searching for a mainland affiliate for several years, said acquiring the Logan savings institution was an ideal first step into its planned expansion in the western United States.
"First Federal was attractive not only because of its location but it also possess strong loan processing units in Cache, Box Elder, Salt Lake and Weber counties," said Wayne E. Jack, chairman and president of FirstFed.
An 80-year-old savings institution, FirstFed is the holding company for First Federal Savings and Loan Association of America, with offices on six Hawaiian islands, and First Savings and Loan Assocation of America, with offices on Guam and Saipan.