Columbia Financial Inc., the holding company for Fair Lawn-based Columbia Bank, announced Tuesday it has acquired RSB Bancorp. Inc., the holding company for Roselle-based Roselle Bank.
Under terms of the merger, depositors of Roselle will become depositors of Columbia Bank and will be given all the same rights and privileges in Columbia Bank, MHC, the mutual holding company parent of Columbia Bank, as if their accounts were previously established there. Columbia Financial will also issue additional common stock shares to Columbia Bank in an amount equal to the fair value of Roselle. The shares will be distributed immediately before the merger is finalized.
“We are excited to partner with Columbia Bank, a leading New Jersey-based bank with shared culture and values. The merger will provide an opportunity for customers to join a larger banking network, with expanded products and services, while employees will benefit from the opportunity to work for a rapidly growing community bank. The support of the Columbia Bank Foundation will serve as an asset to our local communities and charitable organizations,” William E. Fredericks, chairman of the board of directors, Roselle, said.
Roselle, established in 1889, is a savings bank with four offices in Union, Somerset and Hunterdon counties. As of Sept. 30, it had total assets of $442 million, loans of $171 million, deposits of $338 million and equity capital of $61 million.
Columbia Bank said it will provide employment to all Roselle workers and will add one current member of Roselle’s board of directors to Columbia Bank’s board of directors.
“We are pleased with the opportunity to welcome Roselle Bank and its employees to Columbia Bank. The transaction will combine two community banks with strong, loyal customer bases, while expanding the Columbia Bank franchise in Union, Somerset and Hunterdon counties,” Thomas J. Kemly, CEO and president, Columbia, said.
The deal is expected to close in the second quarter of 2020. Once it has, Roselle Bank will merge into Columbia Bank.
Columbia was advised by Boenning & Scattergood Inc., an investment banking firm, and Kilpatrick Townsend & Stockton LLP, a law firm. Roselle was advised by Sandler O’Neill + Partners L.P., an investment banking firm, and Luse Gorman P.C., a law firm.
Financial terms were not disclosed.
