1st Constitution Bank announced Monday it has agreed to acquire Toms River-based Shore Community Bank in a deal valued at $53.1 million.
Once the deal has closed, Shore will merge with and into 1st Constitution.
Under terms of the merger agreement, Shore shareholders will receive approximately 0.89 of a share of 1st Constitution common stock, $16.50 in cash, or a combination of 1st Constitution common stock and cash, for each share they own. 1st Constitution said it expects to issue approximately 1.5 million new shares of common stock in this deal.
Shore currently operates five bank branches throughout Toms River, Jackson and Manahawkin. Shore has assets of $274 million, loans of $212 million and deposits of $240 million, it said, as of March 31. Following the merger, 1st Constitution will have about $1.5 billion in assets, $1.1 billion in loans and $1.2 billion of deposits with 26 banking offices in Bergen, Middlesex, Monmouth, Mercer, Ocean and Somerset counties.
“We are pleased to be combining with Shore Community Bank and expanding our presence into several new markets in Ocean County. Northern and Central Ocean County represent attractive markets with desirable demographic characteristics and growth opportunities,” Robert F. Mangano, CEO and president, 1st Constitution Bancorp, said. “Shore is a high performing community bank with strong core deposits and solid loan growth. The merger has strategic and financial merit and will generate a number of benefits to both our existing shareholders, and our new shareholders from Shore Community Bank.”
“Our board considers this merger to be an excellent opportunity and partnership which will benefit our shareholders through ownership in a growing financial institution with shares that trade on a national exchange. Our customers and the community will benefit from the enhanced products and services offered by 1ST Constitution, its financial strength and its strong commitment to its customers and the communities it serves,” Robert T. English, CEO and president, Shore Community Bank, said.
D.A. Davidson & Co. will serve as the financial advisor and Day Pitney will serve as legal counsel to 1st Constitution. Raymond James will serve as financial advisor and Windels Marx Lane & Mittendorf LLP will serve as legal counsel to Shore.
