First Bank has agreed to acquire a pair of bank branches in Central Jersey from OceanFirst Bank, the two announced this week.
Hamilton-based First Bank will acquire the branches in Flemington and Monroe from Toms River-based OceanFirst Financial Corp., parent of OceanFirst Bank N.A. Under the agreement, First Bank will acquire the branches and equipment, about $124 million in deposits and select loans totaling about $14 million. The assets will be acquired at book value, except for the branches, which will be acquired at appraised value, and the deposits will be acquired for a 2% premium, approximately $2.5 million.
“This transaction enables First Bank to realize additional scale in our targeted service area and acquire long-term, low-cost core funding 35% below our current cost of funding, along with providing an opportunity for long-term value creation,” Patrick Ryan, First Bank’s CEO and president, said in a prepared statement. “We believe that the integration experience we have gained in recent years, along with the excellent relationships we maintain with regulators, will enable a seamless transition with minimal disruption for all customers.”
It is expected that employees of the branches will join First Bank.
The branches will continue operating as OceanFirst branches until completion of the deal, slated for the fourth quarter, pending customary approvals and conditions.
Boenning & Scattergood Inc. served as First Bank’s financial adviser. Troutman Pepper provided legal counsel to First Bank, while Luse Gorman P.C. provided legal counsel to OceanFirst.
