First Bank has signed a definitive merger agreement to acquire New Jersey-based Grand Bank in an all-stock transaction.

The $19.4m transaction has been unanimously approved by the boards of the two banks.

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Grand Bank acquisition details:

Under the terms of the agreement, Grand Bank shareholders will receive 3,262.956 shares of First Bank common stock per Grand Bank common share.

Accordingly, First Bank is expected to issue around 1.7 million new shares to complete the transaction.

Headquartered in Hamilton of New Jersey, Grand Bank had assets of nearly $197m at 31 December 2018.  It serves its customers through two full-service locations.

Primarily, it offers all general banking services including deposit accounts, savings accounts, loans and mortgages.

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First Bank president and CEO Patrick Ryan said: “This merger is another example of the high-quality and low-risk transactions we are using to accelerate our growth rate, solidify market position and expand our service area.

“Grand Bank’s organisational values and culture are a very good fit with ours, and we are delighted to welcome Grand Bank’s employees to the First Bank team.

“In addition, this transaction further strengthens our balance sheet through loan portfolio diversification and provides expanded access to cost-effective retail deposit customers and funding.”

Following the completion of the transaction, First Bank will have around $1.9bn in assets and 18 branches.

The Grand Bank acquisition is expected to be completed in the third quarter of this year. The completion is subject to shareholder and other regulatory approvals.