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ESSA Bancorp set to acquire First Star
Brian Pedersen//July 19, 2012//
ESSA Bancorp Inc. has total assets of approximately $1.1 billion and First Star Bancorp Inc. has approximately $423 million in assets. ESSA Bank & Trust conducts the majority of its business in Monroe County, with branches in neighboring Northampton and LehighCounties.
The acquisition will add nine full service locations, all in the Lehigh Valley, to ESSA Bancorp, Inc.’s existing 17-branch network. No branch closings are anticipated as a result of this transaction.
Election forms will be mailed soon to the stockholders of First Star Bancorp for completion.
Gary Olson, president and CEO of ESSA Bank & Trust, said the merger was first announced in December 2011. ESSA is a community savings and loan bank similar to First Star.
“Our cultures match up pretty well, I think,” said Olson. “We are looking forward to moving in a bigger way into the geography of the Lehigh Valley.”
ESSA has locations in three Lehigh Valley Weis Market locations, added Olson. Also, the company started small business lending in the Lehigh Valley within the last five years.
Olson said there will be some terminations at First Star. However, he said the bulk of the branch employees, including the lenders, will remain employed.
By August, he said all nine full service locations in the Lehigh Valley will become branded with signage and other materials as ESSA Bank & Trust.
“There’s been no major roadblocks, we are moving along with the expectations we had last year,” said Olson. “We’re gearing up for a closing of the deal.”
Olson could not reveal exactly when the closing would occur.
