Gibraltar Bank has agreed to merge their businesses with and into Bogota Financial, the parent of Bogota Savings Bank.

Upon deal completion in the first quarter of next year, Bogota Financial’s assets will increase to $846m.

Transaction details

At the end of June 2020, the firm managed around $738.7m in assets.

The purchase will also Bogota Financial’s branch network by two-fold.

Three branch offices of Gibraltar will serve as Bogota’s branch offices upon deal completion.

As part of the deal, one Gibraltar director will get seats on the board of trustees of Bogota Financial, MHC, Bogota Financial’s mutual holding company parent.

The director will also sit on the boards of directors of Bogota Financial and Bogota Savings Bank.

Gibraltar president and CEO Robert Walsh said: “We feel the combined bank will be stronger than each was separately, allowing us to provide more services and convenience to our customers and the communities we serve.”

The deal already secured the green light from the two companies’ boards. It now awaits regulatory nod.

The deal is anticipated to add to Bogota Financial’s 2021 net income and earnings per share.

Walsh will assume the role of executive vice president and chief lending officer of Bogota.

Bogota president and CEO Joseph Coccaro said: “We are very familiar with Gibraltar and believe the bank will be a great complement to us.

“This combination will be positive for both banks and ensures a stronger local banking presence throughout our communities.”