Investors Bancorp and The Bank of Princeton have signed an agreement under which The Bank of Princeton will merge with and into Investors Bank.
Princeton stockholders will receive a combination of stock and cash valued at $154 million.
As of December 31, 2015, Investors Bancorp operated 140 offices located in New Jersey and New York. The company was founded in 1926 and is headquartered in Short Hills.
Upon completion of deal, investors bank will have an additional dozen branches, primarily in the greater Princeton and in Philadelphia
The Bank of Princeton, a community bank, was founded in Princeton in 2007. The company has nine branches in New Jersey, including three in Princeton and others in Hamilton, Pennington, Montgomery, Monroe Township, Lambertville, and New Brunswick. Three more branches operate under the MoreBank name in the Philadelphia area.
“We believe The Bank of Princeton’s customers and stockholders will benefit greatly from this transaction,”Bank of Princeton President Edward Dietzler said in a statement about the deal. “Investors Bank brings additional retail and business banking products, expanded lending capabilities and capital strength that will enable the combined company to better compete in our marketplace. Our officers and employees look forward to joining the Investors Bank team.”
Under the terms of the agreement, 60% of The Bank of Princeton’s common shares will be converted into Investors Bancorp common stock and the remaining 40% will be exchanged for cash. The Bank of Princeton’s stockholders will have the option to elect to receive either 2.633 shares of Investors Bancorp common stock or $30.75 in cash for each common share of The Bank of Princeton.
After the transaction is completed, Investors Bancorp will create an advisory board consisting of some members of The Bank of Princeton’s board of directors. Key senior executives will remain with Investors Bancorp through the merger transition.
The agreement has been approved by the boards of directors of Investors Bancorp, Investors Bank and The Bank of Princeton. The completion of the transaction is subject to the approval of The Bank of Princeton’s stockholders, as well as regulatory approvals. All of The Bank of Princeton directors and executive officers, who own shares representing approximately 10 percent of The Bank of Princeton’s outstanding common stock, have entered into voting agreements to vote their shares in favor of the transaction.
The merger is expected to close in the fourth quarter of 2016.