Princeton Bancorp, parent company of the Bank of Princeton, has agreed to acquire Cornerstone Financial for $17.9 million in stock in order to expand in South Jersey.
According to a joint announcement on Thursday, Cornerstone shareholders will receive 0.24 share of Princeton Bancorp for each share of Cornerstone Financial. That values each Cornerstone share at $8.16 based on the Princeton Bancorp closing price Wednesday of $34.
Mount Laurel-based Cornerstone is the parent company of Cornerstone Bank.
Princeton Bancorp will have about $2.3 billion in assets, $1.8 billion in loans and $2 billion in deposits when the deal is complete. It will operate 28 branches in New Jersey, five in Pennsylvania and two in the New York City area.
Princeton Bancorp has branches in Hunterdon County and Montgomery County, Pennsylvania.
Cornerstone’s main office is in Moorestown in Burlington County, and it has five other branches in South Jersey.
“We are thrilled to announce the agreement with Cornerstone Financial. Cornerstone represents the second acquisition we have announced in the last 15 months, and further supports our growth in the southern New Jersey market, while doing so in a manner that is minimally dilutive to tangible book value and accretive to our earnings,” Edward Dietzler, Princeton Bancorp CEO and president, said.
“As part of a larger organization, we believe our customers will benefit from expanded financial products and resources, as well as greater access to additional full-service bank locations throughout the Philadelphia and South Jersey market. We also believe that our employees will have greater opportunities for growth and advancement as part of a larger community bank with such an outstanding reputation. Finally, we believe our shareholders will also benefit as part of a dividend paying larger bank with greater liquidity and strong earnings power,” Gene D’Orazio, CEO and president of Cornerstone Bank, said.
Princeton Bancorp projects a completion of the deal in the second or third quarter.