First Bank announced Tuesday it has acquired Grand Bank in a merger transaction valued at $19.4 million.
The merger was approved by both institution’s board of directors and is expected to be completed in the third quarter of 2019.
Grand Bank, headquartered in Hamilton, had assets of approximately $197 million, loans of about $163 million and deposits of about $162 million as of Dec. 31, 2018. Following the merger, First Bank will have approximately $1.9 billion in assets with 18 branches located throughout seven New Jersey counties and two eastern Pennsylvania counties.
“This strategic transaction strengthens our market position and deposit share in our core central New Jersey marketplace, while complementing our strong organic growth strategy,” Patrick L. Ryan, CEO and president of First Bank, said. “This merger is another example of the high-quality and low-risk transactions we are using to accelerate our growth rate, solidify market position and expand our service area. Grand Bank’s organizational values and culture are a very good fit with ours, and we are delighted to welcome Grand Bank’s employees to the First Bank team.”
Under the agreement, Grand Bank shareholders will receive approximately 3.3 million shares of First Bank common stock per each Grand Bank common share outstanding in the exchange.
“The shareholders, customers and associates of Grand Bank will all benefit from our merger with First Bank, a financially strong and effectively managed institution,” Peter Pantages, chairman, CEO and president of Grand Bank, said. “First Bank has a very good track record and is successfully executing upon its vision to be a premier multimarket community bank focused on high-touch customer service.”
First Bank said it expects to issue about 1.7 million new shares of common stock once the deal has closed.
FIG Partners, LLC and Boenning & Scattergood acted as financial advisers to First Bank and Sandler O’Neill + Partners, L.P. acted as financial adviser to Grand Bank. Covington & Burling LLP provided legal counsel to First Bank and Windels Marx Lane & Mittendorf, LLP provided legal counsel to Grand Bank.
