The combined company will have around $4bn in assets, $3bn in gross loans, $3.1bn in deposits and 26 branches throughout New Jersey
Spencer to merge with Mariner’s Bank. (Credit: Capri23auto from Pixabay.)
Spencer Savings Bank (Spencer) has agreed to acquire New Jersey-based chartered commercial bank Mariner’s Bancorp (Mariner’s Bank) in an all-cash transaction.
Under the terms of the merger agreement, Mariner’s Bank will merge into Spencer, with Spencer remaining as the surviving entity.
Mariner’s Bank will add six full-service branch locations to Spencer, enhancing and expanding its footprint into eastern and northern Bergen County, New Jersey.
Headquartered in Edgewater, Mariner’s Bank had total assets worth nearly $414m, loans valued at $348m and deposits worth $362m, as of 31 March 2021.
Mariner’s Bancorp and Mariner’s Bank president and CEO Robert Baumann said: “This transaction combines two strongly capitalised financial services companies.
“We are excited with our new partnership with Spencer and the opportunities for growth that it will provide for our employees and customers.
“The infrastructure that has been built at Spencer will enable our customers to access a strong product offering.”
The transaction has been unanimously approved by the boards of directors of both organisations.
Closing of the transaction is expected in Q4 2021, subject to certain customary closing conditions regulatory approvals, including Mariner’s Bank shareholders’ approval.
Upon closing of the transaction, the combined company will have around $4bn in assets, $3bn in gross loans, $3.1bn in deposits and 26 branches throughout New Jersey.
The transaction is expected to be around 30% accretive to Spencer’s 2022 earnings, on a pro forma basis.
Spencer Savings Bank chairman and CEO José B Guerrero said: “This opportunity brings together two community-focused companies.
“It enhances our business banking initiatives and facilitates our expansion into northern and eastern Bergen County. We are excited to welcome Mariner’s Bank team and customers and look forward to the opportunity to work with them.”
The investment banking firm of Piper Sandler & Co. served as an advisor and the law firm of Locke Lord represented Spencer in the transaction.
The Kafafian Group served as an advisor, and the law firm of Windels Marx Lane & Mittendorf represented Mariner’s Bancorp and Mariner’s Bank.