HONOLULU -- Bancorp Hawaii Inc. has signed a definitive agreement to acquire the parent company of First Federal Savings and Loan Association, bank officials announced Tuesday.
In November, the parent company of the state's largest bank, Bank of Hawaii, signed a non-binding agreement to purchase FirstFed America Inc.
Federal regulations prohibited FirstFed from striking a firm agreement until three years had elapsed after its conversion from a mutual to a stock association in late December 1986.
'The joining of two successful and extremely strong financial institutions will be good for the community and provide great opportunities for our employees. We are proud that FirstFed has been able to maximize our shareholders' vlue over the relatively short period of time since our conversion to a stock company three years ago,' said Wayne E. Jack, chairman, president, and chief executive officer of the thrift.
'We believe the proposed acquisition offers an excellent growth opportunity for both Bancorp and FirstFed,' said H. Howard Stephenson, board chairman and chief executive officer of Bancorp.
The agreement calls for a cash payment of $38.50 per share of FirstFed stock or $141 million for all shares currently outstanding.
The boards of directors for both financial institutions have approved the agreement, but it must still be approved by FirstFed shareholders, the bank said.
The acquisition also needs approval by regulatory officials, including the Federal Reserve Board and the Office of Thrift Supervision.