Columbia Financial, the parent company of Columbia Bank, has signed an agreement to acquire Stewardship Financial, the holding company for Atlantic Stewardship Bank, for about $137m (£108m).
Founded in 1985, Atlantic Stewardship Bank is a full-service commercial bank and has 12 banking offices in Northern New Jersey. The bank, which serves individuals, businesses and their communities, had $961m (£755m) in total assets, $747m (£587m) in loans and $784m (£616m) in deposits as of 31 March 2019.
As per the terms of the deal, the shareholders of Stewardship Financial will receive $15.75 (£12.42) in cash for each share of Stewardship common stock held.
The deal was approved the boards of directors of the two banks and will be completed after all the customary closing conditions such as receipt of various regulatory approvals and the approval from Stewardship shareholders.
The transaction is expected to be closed in the fourth quarter of 2019. Once the deal is closed, Atlantic Stewardship Bank will merge into Columbia Bank.
Stewardship president and CEO Paul Van Ostenbridge said: “We are excited about the combination with Columbia Bank and the amazing opportunities this presents to our customers and the community through an expanded platform with greater financial resources.
“Columbia has a history of delivering quality, competitive financial services and a positive customer experience along with making a difference in the communities we serve.
“These shared philosophies make the blending of our two companies the faithful evolution for Atlantic Stewardship Bank.”
Following the acquisition, Van Ostenbridge will join the board of directors of Columbia and Columbia Bank and a board member of Stewardship will be selected by the Columbia Bank Foundation to serve on its board of directors.
Columbia president and CEO Thomas Kemly said: “We are pleased to announce the strategic combination of the two banks, both of which are strong community banks dedicated to serving their local communities.
“Our companies share common values with a strong culture focused on relationships and serving our communities, making this combination a perfect partnership.”
Kemly continued saying: “We believe the merger represents a significant step towards profitably deploying capital we raised in our public offering and is a great fit with our growth plan.”
On the transaction, Columbia Financial was advised by the investment banking firm of Boenning & Scattergood and represented by Kilpatrick Townsend & Stockton, while Stewardship Financial was advised by the investment banking firm of Sandler O’Neill + Partners and represented by McCarter & English.