Kearny Financial Corp., the holding company for Fairfield-based Kearny Bank, and MSB Finacnial Corp., the holding company for Millington Bank, announced on Wednesday the acquisition which was unanimously approved by both boards of directors.
Under the merger, Millington will merge with and into Kearny. Each outstanding share of Millington common stock will be exchanged for 1.3 shares of Kearny common stock, or $18. Upon closing, Kearny shareholders will own about 94% of the combined company and Millington shareholders about 6%.
Kearny will now have expanded offerings into Somerset and Morris counties, it said.
“I am very pleased to announce our partnership with Millington Bank. We are two strong community banks with well over two combined centuries of rich history serving our clients and the surrounding communities. We welcome the Millington employees and clients and feel that our expanded product suite and focus on digital technologies will offer an opportunity to further grow the combined franchise which makes this a winning combination for all concerned,” Craig L. Montanaro, CEO and president of Kearny, said.
The combined company is expected to have $7.25 billion of assets, $5.1 billion of loans and $4.67 billion of deposits with 52 full service branch locations.
“We are pleased to be joining Kearny and its strong branch network in New Jersey and New York City. This merger will expand the banking opportunities and services available to our employees, customers and the communities that we serve,” Michael Shriner, CEO and president of Millington Bank, said.
The merger is expected to close in the second quarter of 2020. PNC FIG Advisory Inc. served as financial advisor to Kearny, and Luse Gorman P.C. served as its legal counsel. FinPro Capital Advisors Inc. served as financial advisor to Millington and Jones Walker LLP served as its legal counsel.