Updated May 14, 2024: Provident Financial Services Inc., the holding company for Provident Bank, announced May 13 that it expects the merger with Lakeland Bank to be finalized after the close of trading May 15.

The original story below was published April 15, 2024.

The parent companies of Provident and Lakeland banks received final regulatory approval for their $1.3 billion merger. 

The April 11 announcement as well as green light from the Board of Governors of the Federal Reserve System follows nods from the Federal Deposit Insurance Corp. and the state Department of Banking and Insurance, which the New Jersey-based financial institutions received in March. 

No further regulatory approvals are required to complete the merger, the banks said.  

Provident added that the Federal Reserve approval is subject to its commitment to issue $200 million of Tier 2 qualifying subordinated debt before or with the completion of the merger. Provident also committed to submitting a capital plan to the Federal Reserve Bank of New York within 60 days of the deal’s close. 

Originally expected to close in the second quarter of 2023, the deal was extended at the end of the year to March 31, 2024. The move allowed more time to obtain regulatory clearances. With this final approval, executives expect to finalize in the second calendar quarter, subject to the completion of debt issuance and satisfaction of customary closing conditions. 

Staying in Iselin

Provident has its headquarters in Iselin, while Lakeland is based in Oak Ridge. The new entity will retain its Iselin base, according to the deal’s initial announcement in September 2022.

When the transaction is finalized, Provident will become the 83rd largest insured depository organization in the U.S. The bank will have total consolidated assets of approximately $25.3 billion, which would represent less than 1% of the total assets of insured depository organizations in the country, according to the Federal Reserve System.  

In New Jersey, Provident would become the seventh largest insured depository institution, controlling deposits of approximately $18.2 billion, which represent approximately 4.1% of the total deposits of insured depository institutions in that state. 

About the banks

According to the announcement from the Federal Reserve System: 

Provident: 

• The 128th largest insured depository organization in the U.S. with consolidated assets of approximately $14.2 billion; 
• Controls approximately $10.3 billion in consolidated deposits, which represent less than 1% of the total amount of deposits of insured depository institutions in the country; 
• Operates in New Jersey, Pennsylvania and New York; 
• The eighth largest insured depository institution in New Jersey, controls deposits of approximately $9.8 billion — representing approximately 2.2% of the total deposits of insured depository institutions in the state.

Lakeland: 

• The 149th largest insured depository organization in the U.S., with consolidated assets of approximately $11.1 billion;
• Controls approximately $8.6 billion in consolidated deposits, which represent less than 1% of the total amount of deposits of insured depository institutions in the country; 
• Operates in New Jersey and New York; 
• The 11th largest insured depository institution in New Jersey, controls deposits of approximately $8.4 billion — representing approximately 1.9% of the total deposits of insured depository institutions in the state.

From the executives

In March, the leaders of the banks expressed their excitement about the deal.

“We are very pleased to be closer to combining our two great banks to create a top-tier super-community bank. This merger will afford us greater opportunity to serve the financial needs of our customers and communities, and to continue to expand and grow our product offerings,” Provident Bank President and CEO Anthony Labozzetta said in a statement.

Lakeland President and CEO Thomas Shara added, “The combination of our two organizations gives me great pride as we bring together top talent and leadership under one team.”