Producers Savings Bank Corporation (“Producers Bank”), formerly a rural bank that has recently been upgraded to the status of a thrift bank, acquired one hundred percent (100%) of the issued and outstanding common shares of the New Rural Bank of Victorias, Inc. (“Bank Victorias”) from its former stockholders.
The basic premise underlying the acquisition by Producers Bank of the entire voting stocks of Bank Victorias is to lay down the framework for the consolidation of Producers Bank and Bank Victorias as constituent corporations, into a new, but larger, banking entity with significant presence in Luzon and in Western Visayas.
The consolidation is in line with Producers Bank’s business plan of expanding its operations outside of Luzon, where it now has sixty (60) branches located in the provinces of Benguet, Pangasinan, La Union, Cagayan, Quirino, Isabela, Nueva Vizcaya, Aurora, Nueva Ecija, Bulacan, Pampanga, Tarlac, Zambales, Camarines Sur, Albay, Sorsogon and in the cities of Baguio and Pasig. Soon, Producers Bank will also have branches in the provinces of Batangas, Quezon and Laguna.
The intended consolidation is in support of the policy of the Bangko Sentral ng Pilipinas (“BSP”) to promote mergers and consolidations among banks as a means to develop larger and stronger financial institutions.
According to Mr. Andres M. Cornejo, Chairman and CEO of Producers Bank and now also the Chairman of Bank Victorias, “Producers Bank plans to immediately apply with the Monetary Board and the BSP for the consolidation of the two (2) banks into a new banking entity, which will serve as the consolidated and surviving bank in accordance with the Corporation Code of the Philippines, and applicable banking laws and regulations”.
Bank Victorias is a 49-year old rural bank organized in 1961 in Victorias, Negros Occidental with total resources amounting to PhP150.6 Million as of 31 December 2009. At present, Bank Victorias has six (6) banking offices located in key cities in Negros Occidental, namely, Victorias, Kabankalan, San Carlos, Bacolod and Escalante as well as in Iloilo City, Iloilo.
Furthermore, Bank Victorias offers deposit, loan and money remittance services as well as a collection agent for Bacolod City Water District and Metro Iloilo Water District. It received the MABS EAGLE Achievement Award for 2003 and was recognized as one of the first rural banks to promote and implement Globe’s G-Cash as a means to deliver domestic and international remittances.
The intended consolidation is in support of the policy of the Bangko Sentral ng Pilipinas (“BSP”) to promote mergers and consolidations among banks as a means to develop larger and stronger financial institutions.