Valley Bank announced Friday it has officially completed the acquisition of Bank Leumi USA — the U.S. subsidiary of Bank Leumi Le-Israel — in a deal valued at $1.2 billion.
The move will create the 29th-largest publicly traded U.S. bank.
Under terms of the deal, Valley will issue approximately 85 million shares of common stock and pay $113 million in cash in the transaction. The common shareholders of Bank Leumi USA will receive 3.8025 shares of Valley common stock and $5.08 in cash for each Bank Leumi USA common share that they own.
As of Dec. 31, 2021, Bank Leumi had approximately $8.3 billion in assets, $5.8 billion of diverse commercial loans and $7.1 billion of low-cost deposits.
As the principal subsidiary of Valley National Bancorp, Valley Bank is a regional bank with approximately $50 billion in assets. Valley operates many convenient branch locations and commercial banking offices across New Jersey, New York, Florida, Alabama, California and Illinois.
Valley CEO Ira Robbins said the acquisition supplements Valley’s commercial banking expertise and provides new business capabilities in the technology banking and private banking areas. The combined institution will have enhanced scale and be well-positioned to capture diverse commercial growth opportunities throughout its markets.
“This transaction further solidifies Valley’s position as one of the premier full-service commercial banks in the country,” Robbins said. “We are incredibly excited about the new business capabilities and the differentiated growth opportunities that Bank Leumi will bring to our combined organization.”
In connection with the merger, former Bank Leumi CEO and President Avner Mendelson has joined the board of directors of Valley in the role of vice chairman.