Flushing Financial Corp. of Lake Success, N.Y., has agreed to buy Atlantic Liberty Financial Corp. of Brooklyn for $41.9 million in cash and stock.
The Long Island company, the $2.3 billion-asset parent of Flushing Savings Bank, has one branch in Brooklyn. Buying the $177 million-asset Atlantic would give it two more - one of them in the heart of the borough's financial district - and add $125 million of loans and $108 million of deposits.
John R. Buran, Flushing's president and chief executive, said that owning Atlantic's Montague Street branch would present "an immediate and very important opportunity" to his company. "It's in the center of the business district in Brooklyn. There's about $3 billion of deposits on that street."
Mr. Buren added that Atlantic has been unable to take full advantage of the opportunities in the area because of its relatively small lending limit - about $4.3 million.
"They've been trying to get around that through loan participations, but that is a cumbersome way to do business," he said. "We'll be able to help a lot in that regard."
Flushing's last acquisition was of New York Federal Savings Bank in Manhattan for $13 million in September 1997.
Flushing's offer works out to $24 per share, about 1.4 times Atlantic Liberty's book value.
The deal was announced Wednesday.
