Federal Reserve Board Approves Sterling Bank Inc.'s Acquisition of Farnsworth Bancorp, Inc. and Sterling Bank Announces Results
March 01 2007 - 6:07PM
PR Newswire (US)
MT LAUREL, N.J., March 1 /PRNewswire-FirstCall/ -- Sterling Bank
(NASDAQ:STNJ) and Farnsworth Bancorp, Inc. (OTC:FNSW) (BULLETIN
BOARD: FNSW) today announced that on February 28, 2007, the Board
of Governors of the Federal Reserve System approved the proposed
reorganization of Sterling Bank into a holding company, Sterling
Banks, Inc., and the subsequent merger between Sterling Banks, Inc.
and Farnsworth Bancorp, Inc. The companies expect the holding
company reorganization and merger to occur on or about March 16,
2007. The proposed holding company reorganization and proposed
merger remain subject to the satisfaction of certain conditions
contained in each agreement. Sterling Bank and Farnsworth Bancorp,
Inc. also announced the results of elections made by Farnsworth
shareholders regarding their preferences as to the form of merger
consideration that they will receive in the pending acquisition of
Farnsworth by Sterling Banks, Inc. Of the 650,530 shares of
Farnsworth common stock outstanding as of the election deadline: --
209,315 shares elected to receive cash; -- 286,536 shares elected
to receive Sterling Banks, Inc. common stock; and -- 170,640 shares
did not make a valid election. Based on the election results and
applying the conversion provisions set forth in the Merger
Agreement, all Farnsworth shareholders who made valid elections
will receive the merger consideration they elected. The precise
allocation of merger consideration for Farnsworth shareholders who
did not make a valid election will be determined after the closing
of the merger and will be based on the actual number of shares of
Farnsworth common stock outstanding immediately prior to the
closing date. A press release announcing the final merger
consideration will be issued after the closing date. Under the
terms of the Merger Agreement, fractional shares of Sterling Banks,
Inc. common stock will not be issued. Instead, Farnsworth
shareholders will receive cash in an amount equal to the fractional
part of the per share cash consideration. Sterling Bank is a
community bank headquartered in Burlington County, New Jersey.
Sterling Bank's main office is located in Mount Laurel, New Jersey,
and its six other Community Banking Centers are located in
Burlington and Camden Counties in New Jersey. Sterling Bank began
operations in December 1990 with the purpose of serving consumers
and small to medium-sized businesses in its market area. The Bank's
deposits are insured to the applicable regulatory limits per
depositor by the Federal Deposit Insurance Corporation. Sterling
Bank is a member of the Federal Reserve System. The common stock of
Sterling Bank is traded on the NASDAQ Capital Market under the
symbol "STNJ". For additional information about Sterling Bank visit
our website at http://www.sterlingnj.com/. Peoples Savings Bank is
a federally chartered stock savings bank which conducts its
business from its main office in Bordentown, New Jersey and three
branch offices located in Florence, Mt. Laurel and Marlton, New
Jersey. Peoples Savings Bank's deposits are insured up to the
maximum legal amount by the Federal Deposit Insurance Corporation
(FDIC). Farnsworth Bancorp, Inc.'s common stock is traded on the
OTC Bulletin Board under the symbol "FNSW." This news release may
contain certain forward-looking statements, such as statements of
Sterling Bank's or Farnsworth's plans, objectives, expectations,
estimates and intentions. Forward-looking statements may be
identified by the use of words such as "expects," "subject,"
"believe," "will," "intends," "will be" or "would." These
statements are subject to change based on various important factors
(some of which are beyond Sterling Bank's or Farnsworth's control)
and actual results may differ materially. Accordingly, readers
should not place undue reliance on any forward-looking statements
(which reflect management's analysis only as of the date of which
they are given). These factors include general economic conditions,
trends in interest rates, the ability of our borrowers to repay
their loans, the ability of Sterling Bank to effectively manage its
growth, and results of regulatory examinations, among other
factors. Sterling Bank and Farnsworth caution that the foregoing
list of important factors is not exclusive. Readers should
carefully review the risk factors described in other documents
Sterling Bank files from time to time with the Federal Reserve,
including its Annual Report on Form 10-KSB for the year ended
December 31, 2005, Quarterly Reports on Form 10-QSB, and Current
Reports on Form 8-K and documents Farnsworth files from time to
time with the Securities and Exchange Commission, including
Farnsworth's Annual Report on Form 10-KSB for the year ended
September 30, 2006, Quarterly Reports on Form 10-QSB, and Current
Reports on Form 8-K. DATASOURCE: Sterling Bank CONTACT: Robert H.
King, President and CEO of Sterling Bank, +1-856-273-5900, or Gary
N Pelehaty, President and CEO, of Farnsworth Bancorp, Inc., Peoples
Savings Bank, +1-609-298-0723 Web site: http://www.sterlingnj.com/
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