1ST Constitution Bank, a New Jersey-based subsidiary of 1ST Constitution Bancorp, has entered into purchase and assumption agreement to acquire all of the deposit liabilities, real estate, and related assets of the Rocky Hill, Hillsborough and Hopewell, New Jersey branch banking offices of Amboy Bank.
1ST Constitution will acquire the deposit liabilities of the purchased branches for cash, with an option to purchase certain loan relationships associated with three branch offices, on or before closing.
1ST Constitution will pay a deposit premium of $5.25m, subject to certain adjustments, for approximately $110m of deposit liabilities.
The agreement also provides for the acquisition of the real estate on which the acquired branches are located for cash in the amount of $4.6m.
Upon completion of the agreement, 1ST Constitution Bank is expected to have total assets of approximately $800m.
1ST Constitution Bancorp had total assets of $692.5 million, and through its primary subsidiary, 1ST Constitution Bank, operates twelve branch banking offices in Cranbury (two), Fort Lee, Hamilton, Hightstown, Jamesburg, Lawrenceville, Montgomery, Plainsboro, Perth Amboy, Princeton, and West Windsor, New Jersey.
The transaction is expected to close during the first quarter of 2011, subject to regulatory approval and certain closing conditions.