Twenty-eight months after converting from a federal credit union to a thrift, IGA Federal Savings Bank is being sold to a commercial bank.
PSB Bancorp in Philadelphia announced late Thursday that it plans to buy Feasterville, Pa.-based IGA and its parent, Jade Financial Corp., for $24.1 million in cash. The deal for $215 million-asset IGA would create a $455 million-asset institution with 11 branches in Philadelphia.
IGA converted to a mutual savings bank in July 1998. Jade was created when IGA went public in October 1999.
I think this is a perfect match, said Anthony DiSandro, president and chief operating officer at PSB, the parent of First Penn Bank. Were focused mostly on mortgages, construction, and small-business lending. IGA concentrates more on consumer lending, so its certainly complementary.
PSB has revised its projected earnings for 2001 because of the Jade deal. It now expects to earn $3.4 million, against the original projection of $2.5 million. The deal is expected to close in the first quarter.