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United FCU to buy Griffith Savings Bank
ST. JOSEPH, Mich. and GRIFFITH, Ind. (7/29/11)--United FCU (UFCU), St. Joseph, Mich., and Griffith Savings Bank, Griffith, Ind., Wednesday jointly announced the signing of a definitive agreement under which UFCU will purchase substantially all of the assets and assume deposits and other liabilities of Griffith. Under the terms of the agreement, UFCU will purchase all loans, investments, real estate, accrued interest receivables, and other banking-related assets of Griffith (with an estimated value of roughly $81 million, after a discount to the loan portfolio agreed to by the parties) and will assume all deposits, Federal Home Loan Bank advances, and accrued interest payable of about $81 million. “We are extremely pleased to have the opportunity to expand our market presence into Northwest Indiana,” said UFCU’s CEO, Gary L. Easterling. “We welcome the Griffith customers and employees to the UFCU family and look forward to continuing the tradition started by Griffith Savings Bank of delivering community-focused value to the people of Griffith.” UFCU will continue to operate its new credit union branch at Griffith’s current location. Griffith will be retaining certain assets that will be used to fund accrued liabilities relating to its employee benefit plans, which will not be acquired by UFCU in the transaction. The acquisition is subject to regulatory approvals and is expected to close in the third quarter of 2011. Griffith intends to liquidate after the closing and distribute any remaining net assets at the time of liquidation to its depositors. Although the amount of the distribution cannot be determined at this time, depositors who retain accounts at UFCU will be credited with their pro rata distribution upon Griffith’s liquidation. Other depositors will be sent their distributions. Established in 1949, United FCU had total assets of $1.3 billion as of June 30 and operates 22 offices in Michigan, Nevada, Arkansas, North Carolina and Ohio. Griffith had total assets of $88.5 million as of June 30, and operates a single location. Griffith was initially formed in 1930 as Griffith Building and Loan Association.


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