Northeast Pennsylvania Financial Corp. and Higgins Insurance Associates, Inc. have signed a letter of intent for Northeast to acquire Higgins Insurance Agency.
The transaction is subject to certain rights of first refusal by members of the Insurance Alliance of Central Pennsylvania, Inc., of which Higgins is a member.
A decision by the Alliance members is expected by Sept. 28. The acquisition is also subject to the negotiation of a definitive agreement between the parties.
Under the proposed terms, the agency stockholders will receive shares of Northeast’s stock valued at $2.5 million and $600,000 of cash to be paid out over a four-year period with, $200,000 of the cash payment contingent on the achievement of certain agreed upon financial goals.
The acquisition is expected to be completed in the fourth quarter of 2000. Northeast is the holding company of First Federal Bank, Northeast Pennsylvania Trust Co. and Abstractors, Inc., a title insurance agency, which serve greater Northeastern and Central Pennsylvania through thirteen full service office locations and a loan production office.
At June 30, 2000, Northeast had total assets of $658 million. Higgins Insurance Agency is headquartered in Pottsville, Pennsylvania and services customers throughout Schuylkill and Luzerne counties.
The agency has been serving its customers and community since 1946. For the year ended December 31, 1999, the agency earned premiums totaling $24 million.
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