Provident Financial Services, the parent company of Provident Bank, has signed an all-stock deal worth around $208.9 million with SB One Bancorp, the parent company of SB One Bank.
The combined banking organization will have nearly $12 billion in assets and is expected to become the third-largest bank based in New Jersey. The merger is said to bring together a couple of high-performing banking companies that have complementary geographies and business lines.
Established in 1975, SB One Bank is a commercial bank that has 18 branches across New Jersey and New York. Apart from its branches and loan production offices, SB One Bank operates a full-service insurance agency under the name SB One Insurance Agency in addition to wealth services via SB One Wealth.
On the other hand, Provident Bank, which is a community-oriented bank, has been in operations since 1839. Provident Bank offers a range of financial products and services via its branches across northern and central New Jersey, and also Bucks, Lehigh and Northampton counties in Pennsylvania. The bank also offers fiduciary and wealth management services through Beacon Trust Company, its full-owned subsidiary.
Christopher Martin – Chairman and CEO of Provident Financial Services said: “This business combination provides attractive financial attributes to shareholders of both Provident and SB One. At $12 billion in assets, the combined company comfortably surpasses the $10 billion asset threshold and provides Provident a clear management succession plan with the addition of a very skilled leader and banker in Tony Labozzetta, who will serve as President and Chief Operating Officer of the combined company.”
As per the terms of the deal, Provident Financial Services will issue 1.357 of its shares to acquire each of the shares of SB One Bancorp. The all-stock deal values each share of SB One Bancorp at $22.09.
Anthony Labozzetta – President and CEO of SB One Bancorp said: “The merger between our two companies creates the size and scale necessary to compete in the markets that we serve. I am excited to help lead the franchise into the future with talented bankers from both of our organizations.”
The merger between Provident Financial Services and SB One Bancorp is likely to be wrapped up in the third quarter of this year. The closing of the deal will be subject to the meeting of customary closing conditions, including receipt of the necessary regulatory approvals and approval by the shareholders of SB One Bancorp.
The deal will see SB One Bancorp will merge into Provident Financial Services, and SB One Bank will merge into Provident Bank, with Provident Financial Services and Provident Bank being the surviving bank holding company and banking comapny, respectively.