Wayne-based Valley National Bancorp announced Wednesday it has acquired Washington-based Oritani Financial Corp. for $740 million.
The two companies said they have entered into a merger agreement under which Oritani shareholders will receive 1.60 shares of Valley common stock for each Oritani share they own.
“We are thrilled about this combination with Valley. 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,” Kevin Lynch, chairman, CEO and president, Oritani, said.
Lynch will join the board of directors of Valley once the deal is complete.
Valley, and its wholly-owned subsidiary, Valley National Bank, have approximately $32.5 billion in assets, $25.4 billion in loans, $24.9 billion in deposits and 200 branches throughout New Jersey, New York, Florida and Alabama. Oritani, and its wholly-owned subsidiary, Oritani Bank, have approximately $4.1 billion in assets, $3.5 billion in loans, $2.9 billion in deposits, and 26 branches.
The combined company at close is expected to have $38 billion in assets, $30 billion in loans, $29 billion in deposits, and 245 branches.
“Oritani’s conservative credit culture, combined with their customer focus should mesh seamlessly with that of Valley and our vision forward,” Ira Robbins, CEO and president, Valley, said. “I want to thank Kevin Lynch and his entire Oritani team for being responsible stewards of the franchise and balance sheet during his tenure. This capital-enriching transaction will enable Valley to continue to focus on improving the growth profile throughout its entire franchise, while providing enhanced products, services and delivery channels to Oritani’s existing customer base. We are excited about this in-market combination and the synergies that it will bring us.
The deal represents a significant addition to Valley’s New Jersey franchise, Valley said, by enhancing its presence in Bergen County.
The acquisition is expected to close in the fourth quarter of 2019.
