LOS ANGELES -- H.F. Ahmanson & Co., parent company of the nation's largest thrift, said Monday it has agreed to buy The Home Savings Bank of New York in a stock-swap merger agreement worth about $300 million.
Ahmanson, the parent of 357-branch Home Savings of America of Los Angeles and 26-branch Bowery Savings Bank of New York, said the transaction is expected to close by the end of the year.
Ahmanson said it would consolidate the administration of Bowery Savings with Home Savings Bank of New York. It also said it does not aniticipate closing any branches at either operation.
Home Savings Bank of New York, which operates 13 offices in the New York City area and has assets of $1.6 billion, is not affiliated with Ahmanson despite the similarity of its name. It is insured by the Federal Deposit Insurance Corp and exceeds the current FDIC capital requirements.
The deal calls for Home Savings Bank of New York shareholders to receive Ahmanson stock worth about $25 a share and is expected to be submitted to its shareholders in the third quarter.
The transaction would be the first major acquisition for Ahmanson since it bought Bowery in early 1988 for about $200 million cash.
Richard H. Deihl, chairman and chief executive officer of Ahmanson, said, 'Our basic strategy after the enactment of the Financial Institutions Reform, Recovery and Enforcement Act of 1989 has been to look for acquisitions that will add to our capital base while strengthening our market position in and around major metropolitan areas where we have existing offices.'