ConnectOne Bancorp, the parent company of ConnectOne Bank, has signed a definitive agreement to acquire Bancorp of New Jersey in a deal valued at nearly $113m.
The acquisition will bolster ConnectOne’s position in the New York metro market region and will add around $800m of deposits and loans to its portfolio.
Under the terms of the agreement, Bancorp of New Jersey shareholders will receive 0.78 shares of ConnectOne common stock or $16.25 in cash for each share of Bancorp of New Jersey common stock.
One current Bancorp of New Jersey director will also join the Board of Directors of the combined company.
Established in 2006, Bancorp of New Jersey is the holding company for Bank of New Jersey.
The lender offers traditional commercial and consumer banking products and services, and operates nine branch offices.
ConnectOne chairman and CEO Frank Sorrentino said: “This is a financially savvy, in-market acquisition with strong economics to enhance our powerful franchise.
“The accretive transaction demonstrates our commitment to deliver attractive long-term returns for our shareholders and strongly supports our defined growth strategy which includes opportunistic growth through M&A.”
Once complete, the combined lender will have total assets of $7bn, deposits of $5.4bn, and loans of $5.9bn.
The Bancorp of New Jersey acquisition is expected to complete in the first quarter of next year.
The completion is subject to shareholders approval, regulatory approvals and other customary closing conditions.
The latest deal follows the closing of ConnectOne’s combination with Greater Hudson Bank. In January this year, the two lenders merged in an all-stock transaction valuing around $76.3m.