After completing its acquisition of Freehold Bank on Wednesday, Columbia Bank announced another acquisition. This time, the Fair Lawn-based bank is merging with RSI Bank of Rahway, and all of RSI’s depositors will become those of Columbia Bank, with the same rights and privileges as if their accounts had been established in Columbia Bank on the date established at RSI Bank.
In connection with the transaction, RSI Bank will establish and fund a new charitable foundation in the amount of $5 million prior to the effective date of the merger that will support the charitable organizations serving the communities currently served by RSI.
Columbia has offered full employment to all RSI employees upon consummation of the merger. In addition, Columbia will add one current member of RSI’s board of directors to Columbia Bank’s board of directors following completion of the merger.
RSI Bank has provided financial services in its local community for more than 170 years and operates from its main office and three branch offices in Middlesex County and Union County. As of Sept. 30, RSI Bank had total assets of $620 million, loans of $363 million, deposits of $510 million and equity capital of $90 million.
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“We are pleased with the opportunity to welcome RSI Bank and its employees and customers to Columbia Bank,” Thomas J. Kemly, Columbia’s CEO and president, said in a prepared statement. “Both institutions share the principles of caring for their employees, the communities they serve and providing high-quality products and services to their customers. The transaction will strengthen our footprint in Middlesex and Union counties. As two community-minded banks, we are proud to enhance our local impact and support new markets.”
David Taylor, CEO and president of RSI, commented: “We are excited to partner with Columbia Bank, a leading New Jersey-based community bank. The merger will provide an opportunity for our 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 transaction is subject to satisfaction of customary closing conditions, including receipt of various regulatory approvals, and is expected to close in the second quarter of 2022.
Columbia was advised by Boenning & Scattergood Inc. and represented by Kilpatrick Townsend & Stockton LLP. RSI was advised by FinPro Capital Advisors Inc. and represented by Luse Gorman P.C.