IGA Savings may be acquired by competitor

FEASTERVILLE, Pa. - The $210 million IGA Federal Savings Bank, the former IGA FCU, may wind up being owned by PSB Financial Corp., the parent company of the $255 million First Penn Bank. IGA FCU was the first credit union to convert to a stock-owned thrift. The former credit union is owned by Jade Financial Corp. Jade came under intense criticism earlier this year from a couple of large shareholders who questioned Jade's $2 million investment in BankZip.com, a bank owned Web site that offers online services to other banks. The investors said Jade should sell its stake in BankZip.com and focus on its core community banking business. Now, according to an American Banker report, PSB Financial has an option to buy 7.4% of Jade Financial's stock from Lawrence Seidman, one of the investors who was upset by Jade's $2 million investment in BankZip.com. Buying 7.4% of Jade's stock would be a major step toward acquiring Jade, which competes with PSB in the Philadelphia area. Last month, NCUA approved the first merger between a bank and a credit union. Caney Fork Coopeartive was approved to merge with Beacon Federal Mutual Savings Association, East Syracuse, N.Y., the former Beacon FCU.

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