Producers Savings Bank acquires Leyte rural bank

MANILA, Philippines — Producers Savings Bank Corp. has completed its merger with one more rural bank, bolstering the bank’s assets and profit growth via its branch network expansion.

BSP Deputy Governor Chuchi Fonacier issued Circular Letter 2024-022 announcing that the merger of Producers Bank with Rural Bank of Maasin Inc. has taken effect on April 1.

Fonacier said the Securities and Exchange Commission (SEC) approved the plan and articles of merger executed between the two banks on July 3, 2023.

Producers Bank, the surviving entity, will absorb all the assets and liabilities of the rural bank located in Southern Leyte.

The country’s eight largest thrift bank in terms of assets earlier said that expanding its network of branches allowed the bank to reach out to unbanked and underserved areas in the countryside where its products and services are needed by its target markets.

Earlier in 2021, the bank acquired five banks namely Bangko Carrascal Inc., Peoples Bank of CARAGA Inc., Rural Bank of San Quintin Inc., PBCOM Rural Bank Inc. and Masuwerte Rural Bank Inc.

The number of branches brought about by the mergers in 2021 totaled 41,  bringing its branch network as of end-2021 to 249 branches spread over 14 regions and 50 provinces in the country.

The thrift bank continued its branch expansion in 2022, opening its 260th branch in Benito Soliven, Isabela in December 2022.

The BSP approved the Rural Bank Strengthening Program (RBSP) in March 2022 to help boost the operations, capacity and competitiveness of rural lenders in recognition of their role in promoting development in the countryside and financial inclusion.

As part of the RBSP, the central bank raised the minimum capital requirement for rural banks to at least P50 million to further strengthen the industry.

Under the new capital structure, the minimum capitalization of rural banks will be P50 million for those with a head office and only up to five branches, P120 million for those with six to 10 branches, and P200 million for small banks with more than 10 branches.

Other banks gobbled up by Producers Bank include Rural Bank of Bustos Inc. Rural Bank of Sto. Domingo (Nueva Ecija) Inc., Rural Bank of Rosales in Pangasinan, New Rural Bank of Victorias in Negros Occidental, Iloilo City Development Bank, Rural Bank of Cainta in Rizal, Rural Bank of Tayabas in Quezon, Tower Development Bank in Bulacan, and Rural Bank of San Fabian in Pangasinan.

It also acquired Rural Bank of Pamplona (Camarines Sur) Inc., Rural Bank of President Quirino (Sultan Kudarat) Inc., Bangko Rural ng Pasacao (Camarines Sur) Inc., Bangko Rural ng Magarao (Camarines Sur) Inc., Rural Bank of San Fernando (Camarines Sur) Inc., Rural Bank of Barotac Nuevo Inc. and Rural Bank of Sibalom (Antique) Inc.