JACKSONVILLE, Fla. -- First Union Corp.'s Florida bank last week completed the purchase of approximately $810 million in deposits of the Chase Manhattan Bank of Florida and approximately $1.02 billion in deposits of Great Western Bank.
Under the agreement, First Union has converted three former Chase Manhattan branches and 18 former Great Western branches into First Union offices.
The agreement to acquire the deposits and certain other assets of those banks were first announced in June and August, respectively.
Great Western, headquartered in Chatsworth., Calif., said First Union paid a premium of 7.25% for Great Western's $1.02 billion west Florida customer deposit base and 31 branches and an unspecified amount of cash for certain other assets, resulting in a gain on sale of approximately $60 million before taxes. Great Western said the sale will allow it to redirect its energies toward the future growth of its 118 branches in central and southeastern Florida.
Great Western also said that it remains committed to its residential mortgage and consumer lending franchises on Florida's west coast, where it has has six direct lending offices.