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Hanover Bancorp in $28.8M takeover of Chinatown Federal Savings Bank

The parent company of Hanover Community Bank said that the acquisition will help it grow in New York City.

Hanover Bancorp, the parent company of Hanover Community

Hanover Bancorp, the parent company of Hanover Community Bank, said the move will help it grow in New York City, where it has an existing branch in Forest Hills.  Photo Credit: Howard Schnapp

Mineola-based Hanover Bancorp Inc. has reached a deal to acquire Chinatown Federal Savings Bank in a stock and cash deal valued at about $28.8 million.

The transaction is expected to be completed in the first quarter of 2019.

The parent company of Hanover Community Bank said late Thursday that the move will help it grow in New York City, where it has an existing branch in Forest Hills. It also plans to open a second branch in Flushiing, Queens, in early 2019.

Michael Puorro, Hanover's chairman, president and CEO, said "we already have a presence in the Asian-American community in New York City. This transaction will significantly enhance our ability to service those customers and will allow us to further grow the foundation set by CFSB’s branches in Manhattan and in Sunset Park."

Hanover has yet to decide when it will convert Chinatown's signage, Brian Finneran, Hanover's executive vice president and CFO, wrote in an email. 

"That decision will be made in the coming months," he said.

Chinatown Federal  Savings Bank had assets of $132 million, gross loans of $89 million and deposits of $100 million as of June 30. 

Hanover will have $719 million in assets, $618 million in loans and $523 million in deposits after the deal closes, based on June 30 numbers. 

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