First Federal Savings Bank has agreed to acquire FirstFed America Bank in Logan, a subsidiary of Bancorp Hawaii Inc.
First Federal Chairman Gerald R. Christensen also said First Federal's acquisition of Logan Savings and Loan is currently pending regulatory approval.Christensen said First Federal plans to consolidate the two Logan offices of the institutions into a First Federal Savings Bank branch at the current site of Logan Savings.
Christensen said First Federal plans to continue to retain the Logan Savings branch in Tremonton as well as its mortgage loan office in Brigham City.
Ronald G. Barnes, president of FirstFed America Bank said the institution is now profitable, but with the continued consolidation of the financial industry it was decided the bank and its customers would be better served under First Federal's ownership.
Christensen said the two acquisitions should have a positive impact on earnings and will give First Federal a significant presence in Cache and Box Elder Counties.
The FirstFed America transaction requires regulatory approval. It is a cash transaction where First Federal Savings Bank will acquire the outstanding stock of FirstFed America Bank, at a purchase price equal to the capital in FirstFed America Bank. The acquisition is expected to close by late summer.
Christensen said no premium will be paid for either acquisition.