Deal Worth $208.9 Million
June 2, 2020
Provident Financial Services, Inc., the parent company of Provident Bank, and SB One Bancorp, Inc., the parent company of SB One Bank, received Federal Deposit Insurance Corporation and New Jersey Department of Banking and Insurance approvals in connection with the proposed merger of SB One with and into Provident.
The acquisition has a price tag of $208.9 million, according to the website Banking Dive. Provident CEO and president Chris Martin told the outlet the economic downturn and the pandemic did not affect the decision to acquire SB One. The $10.2 billion-asset regional bank, which has locations in New Jersey and eastern Pennsylvania, announced plans to acquire SB One Bank on March 12, a day after the World Health Organization declared the coronavirus a pandemic.
"When we announced the deal, the market was getting hammered," Martin told Banking Dive. "We tried to articulate to shareholders that it's a great opportunity for everybody, it's accretive. It'll be bringing together two companies that are strong, bringing management succession, increasing the market share. And we're going to be better together than separate, so why not continue?"
The combined institution will have approximately $12 billion in assets and would become the third-largest bank headquartered in New Jersey. The two banks have said the deal would give the new entity the size and scale to remain competitive in their market.
Although several deals have met their ends in recent months, Provident's Martin told Banking Dive he is confident the deal will be completed by the end of July.
"I think it's about the leaders of both companies saying, 'We've been up against worse things in life,' and everybody communicating that everybody's viewpoint matters," he said. "There's competence of the management teams to be able to navigate the treacherous waters that come with mergers. … Everybody kind of thinks the same way, which makes the deal more apparent that it was simpatico."
The closing of the merger remains subject to the approval of or waiver by the Board of Governors of the Federal Reserve System, the approval of SB One’s shareholders at the annual meeting of shareholders to be held on June 24, 2020, and certain other customary closing conditions.
Provident Bank, which was founded in 1839, provides an array of financial products and services through its network of branches throughout northern and central New Jersey, as well as Bucks, Lehigh and Northampton counties in Pennsylvania. The bank also provides fiduciary and wealth management services through its wholly owned subsidiary, Beacon Trust Company.
SB One Bancorp is the holding company for SB One Bank, a full-service, commercial bank that operates regionally with 18 branch locations in New Jersey and New York. In addition to its branches and loan production offices, SB One Bank, founded in 1975, offers a full-service insurance agency, SB One Insurance Agency, Inc. and wealth services through SB One Wealth.
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