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Rockville, Md., November 29, 2013 --The merger of Independence Federal Savings Bank (OTCQB: IFSB) and Colombo Bank was completed after close of Business on Wednesday, November 27, 2013. In the transaction, Colombo Bancshares, Inc., the holding company for Colombo Bank, merged into a wholly owned subsidiary of Independence, and Colombo Bank merged into Independence, which changed its name to Colombo Bank. Based on the total assets of each institution as of October 31, 2013, the combined bank has total assets of approximately $210 million.
Upon completion of the merger, the outstanding shares of Colombo Bancshares Class A common stock and Class B common stock converted into the right to receive shares of Independence common stock calculated on a book value basis, as defined in the merger agreement. Pursuant to the merger agreement, Morton A. Bender, the majority stockholder of Independence and Colombo Bancshares and the sole holder of Independence preferred stock and Colombo Bank preferred stock, exchanged his preferred shares for shares of Independence common stock, also on a book value basis. As a condition to closing, in order to strengthen the capital position of the combined institution, Mr. Bender today made an additional common equity investment in Independence of $8.7 million. Shares of Independence common stock that were issued and outstanding immediately prior to the merger remain issued and outstanding and were not changed by the merger.
“We are excited with the merger between Independence Federal Savings Bank and Colombo Bank. Our respective institutions have been closely aligned over the years. Our values, heritage, and foundation have been in concert. I am looking forward to broadening our products and services to our existing and prospective customers”, said Gil Kennedy, President and CEO of Colombo Bank.
Gilbert F. Kennedy, III will hold the position of President and CEO. James Uveges, will remain as Executive Vice President and Chief Financial Officer. John Shroads remain as Executive Vice President and Chief Credit Officer. Gerald Muccioli will remain as Executive Vice President and Chief Lending Officer.
At the completion of the merger, Colombo Bank will operate seven (7) full service banking offices in Greater Washington DC and Greater Baltimore markets. The merger will not result in any changes to Branch Services and Hours. Please visit Colombo Bank’s website, www.Colombobank.com, for times and locations.
Colombo Bank will continue to offer a variety of traditional Commercial, Residential Mortgage and Consumer Loan and Deposit products to its customers.
Merger Welcome Letter
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We know you're busy, so we made it easy for you to bank in person, online, or by phone. To access your account 24-hours a day, call our Telephone Banking at 1-800-561-6829 (1-800-338-5162 effective December 16, 2013).
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