Short Hills-based Investors Bancorp Inc. will acquire Islandia, New York-based Gold Coast Bancorp Inc. in a deal valued at $63.6 million, the two banking institutions announced Wednesday.
Once the deal has finalized, Investors will add six branches in Nassau and Suffolk counties in suburban Long Island and a branch in Brooklyn, New York.
“We are pleased to partner with Gold Coast, a commercial bank with deep ties to the Long Island community and a strong track record of growth,” Kevin Cummings, chairman and CEO, Investors, said. “This transaction strengthens Investors’ current suburban Long Island franchise and deepens our presence in this large, affluent market.”
Gold Coast, founded in 2008, has assets of $563 million, loans of $463 million and deposits of $486 million as of March 31.
“I am excited by the prospects of uniting our company with Investors,” John Tsunis, chairman and CEO, Gold Coast, said. “This transaction will provide our customers with an enhanced value proposition through an expanded product and services offering. Additionally, Investors’ community banking approach and customer focus is highly consistent with the model that has made us successful since our inception.”
Under terms of the deal, 50% of Gold Coast common stock will be converted into Investors common stock, while the remaining 50% will be exchanged for cash. Gold Coast shareholders will have the option to receive either 1.422 shares of Investors common stock or $15.75 in cash for each common share of Gold Coast they own.
Investors said it will also create a regional advisory board consisting of members of Gold Coast’s current board of directors. John Tsunis is expected to serve as chairman of the regional advisory board.
Lazard acted as the financial adviser and McCarter & English, LLP acted as legal counsel to Investors. Keefe Bruyette & Woods acted as the financial adviser, Boenning & Scattergood provided a fairness opinion and Windels, Marx, Lane, & Mittendorf LLP acted as legal counsel to Gold Coast.
