Jackson National Life Insurance Company, Lansing, Mich., is getting out of the banking business.
Less than 6 years after buying First Federal Savings & Loan, San Bernardino, Calif., Jackson National, a subsidiary of Prudential P.L.C., London, has agreed to sell the unit to UnionBanCal Corp., San Francisco.
UnionBanCal, the parent of Union Bank of California, ended 2003 with $1.6 billion in assets, up from $118 million in assets when Jackson National bought it in November 1998.
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Jackson National gave the bank a new name, Jackson Federal Bank, and used acquisitions to increase the number of branches to 14, from 4. The 14 Jackson Federal offices will become branches of Union Bank of California.
A group of 6 commercial loan offices that Jackson Federal operates in California also will be part of the sale. Jackson National hopes to complete the deal by early 2005.
Jackson National paid less than $7 million for the bank in 1998 and now is selling the bank for $305 million, says Jackson spokesman Tim Padot.