Producers Bank is Now the Largest Standalone Thrift Bank
in Terms of Branch Network
We are very proud to announce that Producers Savings Bank Corporation completed its consolidation with the New Rural Bank of Victorias, Inc., the largest rural bank based in Negros island, in October last year, and in the process creating the largest standalone thrift bank in the country in terms of branch network.
Currently Producers Bank has 81 operating branches (all regular branches) and 22 approved but unopened branches. The next branches that will be opened will be in Silay City (Negros Occidental), Maria Aurora (Aurora) and Jaen (Nueva Ecija). Based on available information, we gathered that Philippine Business Bank currently has 78 branches and Planters Development Bank has 74.
The consolidation has also resulted in the increase in the rediscounting line of Producers Bank with the BSP to PhP1.391 Billion.
We are also very proud to announce that after obtaining the necessary board and stockholders approvals, Producers Bank filed an application with the Bangko Sentral ng Pilipinas (“BSP”) and with the Philippine Deposit Insurance Corporation (“PDIC”) for the merger of Producers Bank with Iloilo City Development Bank (“ICDBank”), Producers Bank’s thrift bank subsidiary, with Producers Bank as the surviving thrift bank entity.
ICDBank currently has 8 operating branches and 5 approved but unopened branches.
Not counting on the additional branches that the Monetary Board may grant Producers Bank as merger incentive, the merger will result in 116 branches.
Post-merger with ICDBank, Producers Bank shall have immediate presence in 25 provinces namely: Pangasinan, La Union, Benguet, Nueva Vizcaya, Quirino, Isabela, Cagayan, Aurora, Nueva Ecija, Bataan, Bulacan, Pampanga, Zambales, Tarlac, Laguna, Quezon, Batangas, Camarines Sur, Albay, Sorsogon, Aklan, Antique, Capiz, Iloilo, Negros Occidental and in the cities of Baguio and Pasig. Producers Bank will also open branches in the provinces of Negros Oriental and Cebu.
Land Bank of the Philippines (“LANDBANK”) approved a new 10-year subscription in Producers Bank’s unsecured subordinated debt eligible as lower tier 2 capital in the amount of PhP450.0 Million. Producers Bank earlier exercised its call option on its PhP120.0 Million unsecured subordinated debt which was also issued in favor of LANDBANK.
LANDBANK took cognizance of Producers Bank being currently the largest lender to the individual palay farmers and has also started to lend to sugar farmers. All this in spite of the lowering of tariffs for agricultural products under the AFTA-CEPT.
It will be recalled that Producers Bank, was the first thrift bank to obtain accreditation from the BSP as an accredited rural financial institution in relation to the implementation of RA 10000 known as the Agri-Agra Credit Reform Act of 2009 and its implementing rules and regulations as contained in BSP Circular 736.
For the year ending 2012, Producers Bank reported unaudited total resources of PhP7.671 Billion, a 15.67% increase from year-end 2011 asset level of PhP6.632 Billion.
Total capital funds as of end 2012 was reported at PhP1.015 Billion from PhP661 Million as of end 2011.
Edmundo C. Medrano
Vice Chairman, President and Chief Operating Officer