Centurion Savings to Be Acquired by Atlantic Financial

Centurion Savings & Loan, a six-branch financial institution based in Sherman Oaks, has agreed to be acquired by Atlantic Financial of Bala Cynwyd, Pa., near Philadelphia, for $6.5 million cash.

The deal was announced Monday. The $24-per-share acquisition price represents a healthy premium over Centurion’s Friday closing stock price of $13. Centurion shot up to $20 bid on Monday and closed there. The deal remains contingent on approval from federal and state regulators and Centurion’s shareholders.

Atlantic spokesman Bruce Boyle said the transaction should be complete in about three months.

For Atlantic, Pennsylvania’s largest savings and loan with $6 billion in assets, the acquisition is part of a continuing effort to penetrate the lucrative California market. Atlantic already has a branch in Los Angeles and eight others in Northern California. It said other acquisitions are pending.

Founded in December, 1980, Centurion had 1986 earnings of $913,000. As of Dec. 31, Centurion had assets of $105 million, and its net worth was $4.8 million. Centurion said it employs 58 at branches in Sherman Oaks, Century City, Northridge, mid-Wilshire Los Angeles, Santa Monica and West Los Angeles.

Boyle said Atlantic considers Centurion well-managed, and plans no personnel changes. But he said it will rename the institution Atlantic Financial Savings Bank, the same as Atlantic’s other branches in California.

Both Atlantic and Centurion are publicly traded. Centurion has 272,100 shares of common stock outstanding. Centurion chairman Martin P. Sanders said Centurion has 439 stockholders.

For the year ended Sept. 30, Atlantic earned $16.5 million. Dec. 31 net worth was $254.8 million.