The deal is worth approximately $62.9 million, Northfield said in a news release, as stock transaction.
VSB will merge with and into Northfield, which will bolster Northfield’s presence on Staten Island, New York, where VSB’s six branches are located.
“This merger will strengthen our over-130-year commitment to the people and businesses of Staten Island, and provide greater lending capacity to Victory’s customers, improve efficiency in our combined organization, expand our market share of core deposits and further leverage our strong capital base to support earnings growth,” Northfield CEO and President Steven M. Klein said in a prepared statement.
The combined bank will have assets of $5.2 billion, loans of $3.5 billion and deposits of $3.7 billion, Northfield estimates.
Both boards have approved the agreement, which is still subject to customary approvals and conditions. It is expected to close in the second quarter of 2020.
Ralph M. Branca, VSB’s CEO and president, will join Northfield in a leadership role for Staten Island, while Joseph J. LiBassi, VSB’s chairman, will serve as a consultant for a three-year period to assist with the transition.
Sandler O’Neill + Partners L.P. was Northfield’s financial adviser, while Luse Gorman P.C. was its legal counsel. FinPro Capital Advisors Inc. rendered a fairness opinion, while Gallet Dreyer & Berkey LLP was Victory’s legal counsel.