Bogota Financial Corp., the parent of Bogota Savings Bank, will absorb Gibraltar Bank under a merger agreement the two companies unveiled on Sept. 3.
The deal will increase Bogota Financial’s consolidated assets to $846 million from $738.7 million and Gibraltar’s three offices will double its branch network, the merger partners said in a statement. Under the agreement, Bogota Financial will issue new shares to its mutual holding company, Bogota Financial MHC. Other financial terms were not disclosed.
“We are pleased to partner with Gibraltar, a bank with similar culture and values,” said Joseph Coccaro, Bogota’s president and chief executive officer. “We are very familiar with Gibraltar and believe the bank will be a great complement to us. This combination will be positive for both banks and ensures a stronger local banking presence throughout our communities. We look forward to having a greater impact in our market area.”
Both company’s boards have approved the transaction, which is slated to close in the first quarter of 2021, subject to customary conditions. The deal is expected to be accretive to Bogota’s net income and earnings per share on a pro forma basis.
Bogota operates offices in Bogota and Teaneck; Gibraltar’s branches are located in Newark, Oak Ridge and Parsippany. Bogota has been doing business in northern New Jersey since 1893. Gibraltar was established in 1909.
“We have always focused on our customers’ and communities’ needs,” said Gibraltar President and CEO Robert Walsh. “We feel the combined bank will be stronger than each was separately, allowing us to provide more services and convenience to our customers and the communities we serve.”
Piper Sandler & Co. provided financial advice to Bogota, which was counseled by Luse Gorman PC. Gibraltar received financial advice from FinPro Captial Advisors Inc. and legal counsel from Stevens & Lee.
In July, Bogota financed the acquisition of a 220,000-square-foot shopping center in Freehold by a joint venture formed by Aspen Real Estate and Devli Real Estate.