New Jersey-based Valley National Bancorp has completed its previously announced acquisition of local peer Oritani Financial.

As part of the deal, Oritani Bank, a wholly-owned subsidiary of Oritani Financial, merged into Valley National Bank.

The acquisition strengthens Valley National’s brick-and-mortar presence in the New Jersey region.

Oritani Financial acquisition: Background

In June this year, Valley National Bancorp signed an agreement to acquire Oritani Financial through an all-stock transaction. At the time of the announcement, the deal was valued at $740m.

Under the agreement, Oritani common shareholders are set to receive 1.60 shares of Valley common stock for each share they hold.

As of 30 September 2019, Oritani had around $4bn in assets with 26 branches.

Valley CEO Ira Robbins said: “The completion of this transaction unites two strong institutions, giving us a more significant presence in existing markets.

“Additionally, this combination provides Valley with substantial capital for future organic growth across all aspects of the business.”

At the time of the announcement, Oritani chairman, president and CEO Kevin Lynch said: “The infrastructure that has been assembled at Valley over the past few years will enable our customers to access a substantial product offering while still receiving the local decision making and the exceptional service they have become accustomed to at Oritani.”

Lynch joined the Valley board, as part of the merger.

The integration of the banking systems are slated to complete by first quarter of 2020.