HAZELTON, Pa. First Federal Bank has an unusual deal to acquire Schuylkill Savings and Loan Association.
The $770 million-asset subsidiary of Northeast Pennsylvania Financial Corp. announced Friday that it plans to buy Schuylkills three branches, $15 million of loans, and $13 million of deposits. First Federal said it is paying book value but declined to disclose the price.
Darlene Dolzani, Schuylkills president, said the $16 million-asset thrift will cease to exist when the deal closes, which is expected to be in the fourth quarter.
The mutual thrift decided to sell its branches, assets, and deposits rather than going through the forms of a merger because a sale would benefit depositors more, Ms. Dolzani said. She explained that each depositor will get a portion of the sale proceeds depending on account balances.
First Federal was one of several suitors for the Schuylkill Haven, Pa., thrift, which put itself up for sale a few months ago, according to Ms. Dolzani. Schuylkills management felt the time was right for a sale because the thrift is in a growing area of the state, she said.
Ms. Dolzani said First Federal emerged the winner because it was the first to agree to this type of acquisition, which has only been done a few times in the industrys history.
