Tony D. Whitaker, Chairman of the Company, stated that the banks had decided to merge in order to make various support and back-office functions more efficient.
There will eventually be some cost savings as those efficiencies are realized. Lou Ella Farler, currently president and CEO of First Federal Savings and Loan of Hazard, will serve as the Hazard Area President of First Federal Savings Bank, alongside R. Clay Hulette who is Frankfort Area President and William H. Johnson who is Danville-Lancaster Area President.
All employees of First Federal of Hazard will be retained and all directors of First Federal of Hazard will be offered a seat on the board, subject to regulatory approval.
After the merger, First Federal Savings Bank will operate from seven offices in Kentucky. It will have assets of approximately $304 million, net loans of approximately $244 million, deposits of approximately $209 million, and shareholder’s equity of approximately $62 million (with tangible equity of approximately $49 million).
