Valley National Bank announced Wednesday it has acquired the Westchester Bank, providing Valley with a physical footprint and additional commercial lending expertise in the Westchester County market in New York.
The acquisition is expected to close in the fourth quarter of 2021, subject to standard regulatory approvals and approval of Westchester stockholders, as well as other customary conditions.
Westchester Bank is the largest independent, commercially focused bank headquartered in Westchester County, with total assets of $1.3 billion, total loans of over $900 million and total deposits above $1.1 billion across its seven-branch network as of March 31, Valley Bank officials said.
The combined company’s balance sheet would have $43 billion of assets and $34 billion of each loans and deposits. The addition of Westchester’s seven branches will bring Valley’s branch count to 233, comprised of 131 in New Jersey, 45 in New York, 41 in Florida and 16 in Alabama.
Westchester Bank CEO John Tolomer will join Valley as market president leading Valley’s Westchester County efforts, Valley Bank officials said.
Ira Robbins, Valley’s chairman and CEO, said he feels the merger is a strong fit on many levels.
“Under John Tolomer’s leadership, Westchester has evolved into a high-performing and growth-oriented commercial bank in a desirable market,” Robbins said. “Westchester’s conservative credit culture and high-touch approach to commercial banking align extremely well with Valley’s own value proposition.
“We look forward to having John and his team join Valley, where they will continue to drive growth in the Westchester County market that they know so well. The ability to offer Valley’s comprehensive suite of financial solutions to Westchester’s commercial customers, along with the support of our larger balance sheet and significant capital resources, should drive meaningful growth for Valley in the Westchester County market. We are excited to support John and his team in the next evolution of their company as a part of the Valley family.”
Tolomer said he is eager to be a part of the bigger team.
“We are thrilled about our new partnership with Valley and the opportunities for growth that it will provide for our employees and customers,” he said. “The infrastructure and culture that has been built at Valley over the past few years will enable our customers to access a robust product offering, while still receiving access to the local decision-making and exceptional service they have become accustomed to at the Westchester Bank.”
Under the terms of the merger agreement, the stockholders of Westchester will receive 229.645 shares of Valley common stock for each share of Westchester common stock they own. Based on Valley’s closing stock price June 28, Westchester’s stockholders will receive approximately $210 million in Valley common stock.