Union Properties Inc. ("UPI") and City Savings Bank, Inc. ("CitySavings") obtained Monetary Board ("MB") approval to finalize the acquisition of the 11-branch First-Agro Industrial Rural Bank ("FairBank").
UPI and CitySavings, both wholly owned subsidiaries of Union Bank of the Philippines ("UBP"), announced the approval of the Monetary Board to proceed with the joint acquisition of a majority stake in FairBank, marking the financial conglomerate's foray into Rural and Microfinance Banking.
"We are thrilled about this acquisition because it serves as a first step in serving our unbanked countrymen," said Eugene S. Acevedo, CitySavings Chairman of the Board and UnionBank Senior Executive Vice President. He added, "We are grateful to the founding owners of Fairbank for trusting us to continue their Microfinance mission."
CitySavings is the thrift banking arm of UBP while UPI is engaged in managing the buildings and other real properties which are either wholly or partially owned by UBP.
After the acquisition, FairBank will remain structurally separate and will maintain and keep its company name and organization as well as its brand identity as a "dependable partner for a brighter future".
Established in 1999, FairBank has more than 200 employees and total resources of more than P360 million. It has more than 10,000 borrowers and a depositors' base of over 20,000.
"FairBank, from its conception, has always been aimed at serving the Microfinance community. With this partnership, we hope to further the reach of our services to the under-served communities around the Visayas and beyond. This partnership shall strengthen our tenacity and open new possibilities," said Ms. Dinah Fernan-Verallo, President, CEO and Chairman of FairBank. She added, "Overall, we are elated over this development and we look forward to what is to come."