First ULB Corp. Announces Agreement to Acquire Union Financial Corporation

OAKLAND, Calif.--()--First ULB Corp., the parent of United Labor Bank, F.S.B. announced today that it has entered into a definitive agreement to acquire Union Financial Corporation ("Union Financial"), Albuquerque, New Mexico and its wholly-owned subsidiary, Union Savings Bank (collectively "Union"). According to the terms of the agreement, First ULB Corp. will pay approximately $5.862 million in newly issued First ULB Corp. stock, to the holders of Union Financial’s common stock. The combined entity will have approximately $340 million in assets.

Malcolm F. Hotchkiss, President and Chief Executive Officer of First ULB Corp., stated: “The combination of United Labor Bank and Union Savings Bank will provide greater opportunities for both banks and will continue to advance our position in the West. This transaction is a natural aggregation of our companies as our client and shareholder bases are very similar.”

Joseph S. Coey, Chief Executive Officer and President of Union, commented: “This transaction will enable our team to serve our clients and customers with additional resources supported by a strong capital base.”

The combined company will have a deposit franchise consisting of nine full service banking offices, four offices located in Northern California, three in Southern California, plus individual offices in Seattle and Albuquerque.

The merger is subject to customary closing conditions, including the approval of shareholders and regulatory agencies. The transaction is expected to close in the latter part of the third quarter of 2013.

Statements concerning future performance, developments or events concerning expectations for growth and market forecasts, and any other guidance on future periods, constitute forward looking statements that are subject to a number of risks and uncertainties. Actual result may differ materially from stated expectations. Specific factors include, but are not limited to, the effect of interest rate changes, the ability to control costs and expenses, the impact of consolidation in the banking industry, financial policies of the United States government and general economic conditions.

About First ULB Corp. and United Labor Bank

First ULB Corp. is the corporate parent of United Labor Bank. For additional information about First ULB Corp., please visit our Web site at www.laborbank.com.

About Union Financial Corporation and Union Savings Bank

Union Financial Corporation is the corporate parent of Union Savings Bank. For additional information about Union Financial Corporation, please visit our Web site at www.usbnm.com.

Contacts

First ULB Corp.
Malcolm Hotchkiss, 510-567-6900
mhotchkiss@laborbank.com
or
Union Financial Corporation
Joseph Coey, 505-341-5210
jcoey@usbnm.com

Contacts

First ULB Corp.
Malcolm Hotchkiss, 510-567-6900
mhotchkiss@laborbank.com
or
Union Financial Corporation
Joseph Coey, 505-341-5210
jcoey@usbnm.com