Bank of Princeton to acquire Noah Bank for $25.4M

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The Bank of Princeton entered into a definitive agreement to acquire Noah Bank in an all-cash deal valued at approximately $25.4 million, or $6 per share, the institutions jointly announced Oct. 20. 

Under the terms of the deal – which is expected to close in the second quarter of 2023, subject to regulatory and stockholder approvals – the Bank of Princeton will acquire all of Noah’s outstanding shares in exchange for the purchase price.  

The boards of both banks have approved the plans. 

Founded in 2004 and headquartered in Elkins Park, Pa., Noah Bank is a Pennsylvania-chartered FDIC-insured bank, with operational headquarters in Fort Lee. Through its six branches, Noah Bank serves businesses and consumers primarily in the Asian-American communities of southeastern Pennsylvania, northern New Jersey, Manhattan and Flushing, N.Y. 

Edward Dietzler, Bank of Princeton president and CEO, said the acquisition will allow the business to expand into other markets. 

“It provides a great opportunity to combine two community banks that share a deep commitment to their local markets and gives us a branch presence in northern New Jersey and New York City, where we already do substantial lending, with the addition of five branch locations,” Dietzler added. 

Noah Bank Chairman Edwin Lloyd said his team believes the merger “will be good for our customers as well as our employees.” 

Additional terms 

The banks said the purchase price is about 79.7% of tangible book value as of June 30. The move is expected to be accretive to the Bank of Princeton’s earnings per share in the first year after the acquisition closes. 

Additionally, if the sum of Noah’s shareholders’ equity and allowance for loan losses is less than $37.1 million two days before the closing date, the purchase price will be reduced. As of June 30, the sum for loan losses was $37.6 million. 

On the horizon 

Following the transaction, the Bank of Princeton will have approximately $1.9 billion in total assets, $1.6 billion in loans and $1.6 billion in deposits, with 29 branches serving the southeastern Pennsylvania, New Jersey and New York City markets.  

As previously announced, the Bank of Princeton also reiterated its plans to reorganize into a holding company, where it will become a wholly owned subsidiary of a newly formed corporation known as Princeton Bancorp Inc. The move, which has received stockholder and regulatory approvals, is expected to be completed in the first quarter of 2023. 

Founded in 2007, the Bank of Princeton is a New Jersey state-chartered, FDIC-member commercial bank with 19 branches in New Jersey, including three in Princeton and others in Bordentown, Browns Mills, Chesterfield, Cream Ridge, Deptford, Hamilton, Lakewood, Lambertville, Lawrenceville, Monroe, New Brunswick, Pennington, Piscataway, Princeton Junction, Quakerbridge and Sicklerville. There are also four branches in the Philadelphia, Pa.-area.