24 Apr 2000
Prudential’s Jackson National Life to acquire Highland Bancorp
Prudential today announced that Jackson Federal Bank, a wholly owned subsidiary of Prudential's US subsidiary, Jackson National Life, will acquire Highland Bancorp, Inc. for $120 million (£75 million) in cash from its own resources. Following the acquisition, Highland Federal Bank will be merged with Jackson Federal Bank and the branches of Highland Federal Bank will become Jackson Federal Bank branches.
Jackson Federal Bank will pay $25.45 (£15.81) per share for all issued and outstanding shares of Highland Federal Bank. The transaction is subject to regulatory approval by the Office of Thrift Supervision in the United States and the approval of Highland’s shareholders. It is expected that the transaction will be completed by the end of 2000.
Prudential Group Chief Executive, Jonathan Bloomer said
"The acquisition of Highland Bancorp will further enhance our strategic objective of expanding our product lines, distribution channels and customer base in the US."
Highland Bancorp is the holding company for Highland Federal Bank, which operates seven retail branches in Southern California. Highland had total assets of $667 million (£414 million) at 31 March 2000 and net earnings for the first quarter 2000 of $2.9 million (£1.8 million). Following the acquisition, Jackson Federal Bank will operate 14 branches in the Southern California market and will have total assets of almost $1.1 billion (£683 million).
The combined bank will offer a full range of commercial and residential real estate loans, as well as consumer loans. Internet Banking, including bill payment and bill presentment services will be introduced in the fourth quarter 2000.
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