The Bank of Princeton will acquire Noah Bank in an all-cash transaction valued at approximately $25.4 million, according to a joint announcement on Thursday.
The Bank of Princeton plans to reorganize into a bank holding company structure, pursuant to which it will become a wholly owned subsidiary of a newly formed corporation known as Princeton Bancorp Inc. The bank has received all stockholder and regulatory approvals necessary to do so.
The bank plans to complete this reorganization in the first quarter of 2023.
Noah Bank is a Pennsylvania-chartered, FDIC-insured bank with legal headquarters in Elkins Park, Pennsylvania, and operational headquarters in Fort Lee. Through its six branches, Noah provides banking products and services to businesses and consumers primarily in the Asian-American communities of Southeastern Pennsylvania, northern New Jersey, Manhattan and Flushing, New York.
“This acquisition provides the Bank of Princeton with an excellent opportunity to expand in markets that are a key part of our long-term strategy, while doing so in a manner that is minimally dilutive to tangible book value and accretive to our earnings,” Edward Dietzler, CEO and president of Princeton Bank said.
Edwin Lloyd, chairman of Noah Bank, echoed those comments, stating: “We are very excited to be partnering with such a strong, well-managed organization as the Bank of Princeton. We believe that this merger will be good for our customers as well as our employees. We are eager to help bring together our hometown customer relationship focus with the breadth of product offerings of a much larger banking institution. I am confident that decisions will continue to be made by bankers with a vested interest in our communities.”
Janney Montgomery Scott served as financial adviser to the Bank of Princeton. Stevens & Lee P.C. is serving as legal counsel to the bank. Piper Sandler & Co. served as financial adviser to Noah Bank and rendered a fairness opinion. Holland & Knight LLP is serving as legal counsel to Noah Bank.
