Citizens Financial Group has agreed to acquire Investors Bancorp in a stock and cash deal valued at approximately $3.5bn.

As per the terms of the agreement, shareholders of Investors Bancorp will receive 0.297 of a share of Citizens Financial Group common stock and $1.46 in cash for each share held.

Upon completion, former Investors Bancorp’s shareholders will collectively own approximately 14% of the merged entity.

The acquisition expands Citizens Financial Group’s footprint by adding 154 branches located in the greater New York City and Philadelphia metropolitan areas and across New Jersey.

Additionally, Investors Bancorp will add approximately $27bn in assets, $20bn in deposits, and a large commercial and consumer customer base.

The deal follows Citizens Financial Group’s announcement to acquire HSBC East Coast branches and national online deposits.

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Kevin Cummings, Investors Bancorp chairman and CEO, and Michele Siekerka, member of the board of directors of Investors Bancorp, are expected to join Citizens Financial Group board of directors.

Citizens Financial Group chairman and chief executive Bruce Van Saun said: “We are confident in our ability to successfully integrate these acquisitions, and to overtime deliver the same attractive offerings to customers and strong financial performance in the New York City metro region and New Jersey as we do in other major metro areas we serve.”

Cummings added: “Joining Citizens, with its broad capabilities, scale and commitment to excellence in customer service opens exciting opportunities for our combined company.

“Our local-market expertise and personal touch will align well with Citizens’ approach and together we will drive long-term value for all our stakeholders.”

The deal is expected to close in the first or second quarter of 2022, subject to receipt of various regulatory and shareholders’ approval.