Prudential Bancorp has closed its acquisition of Huntingdon Valley’s Polonia Bancorp for $37 million, effective Jan. 1.
Under terms of the stock and cash deal, South Philadelphia-based Prudential acquired 100 percent of the outstanding shares of Polonia in exchange for a mixture of cash and common shares of Prudential. Polonia shareholders will receive $11.28 per each share. That price exceeds the bank’s $10.41 stock price when the deal was announced in June and its most recent closing price of $11.10.
Prudential will now have $838.9 million in assets, $508.8 million in loans and $563.7 million in deposits with 11 branches in Philadelphia, Delaware and Montgomery counties. The systems integration process is expected to be completed in mid-February.
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Prudential has said it expects the deal to be “significantly accretive” to the combined company’s earnings per share in 2017 and thereafter. It also said it expects to realize over 50 percent cost savings on operations, which could mean significant cuts in personnel, vendors and real estate — though the bank has not yet indicated that it would be shuttering locations.
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