Columbia Bank and Roselle Bank on Tuesday announced the signing of a definitive merger agreement that, upon closing, will merge Roselle into Columbia.
According to Columbia Bank, mutual holding company, Columbia Financial Inc. and Columbia Bank, and RSB Bancorp, mutual holding company, RSB Bancorp Inc. and Roselle Bank, under the agreement depositors of Roselle will become depositors of Columbia, and have the same rights and privileges in that institution.
Fair Lawn-based Columbia said it has also offered full employment to all Roselle employees, excluding those with existing change-in-control agreements, and has agreed to add one current member of Roselle’s board of directors to its own board following completion of the merger.
As part of the transaction, Columbia Financial Inc. will issue additional shares of its common stock to Columbia Bank MHC in an amount equal to the fair value of Roselle as determined by an independent appraiser. These shares are expected to be issued immediately prior to completion of the merger.
Following the completion of the merger, Columbia and Columbia Bank Foundation will support the charitable organizations serving the communities currently served by Roselle.
Roselle Bank operates four banking offices in Union, Somerset and Hunterdon counties. As of Sept. 30, 2019, it had total assets of $442 million, loans of $171 million, deposits of $338 million and equity capital of $61 million.
“We are pleased with the opportunity to welcome Roselle Bank and its employees to Columbia Bank,” Columbia President and Chief Executive Officer Thomas Kemly said in a prepared statement. “The transaction will combine two community banks with strong, loyal customer bases while expanding the Columbia Bank franchise in Union, Somerset and Hunterdon counties.”
The transaction, which was unanimously approved by each company’s board of directors, is subject to satisfaction of customary closing conditions, including receipt of various regulatory approvals, and is expected to close in the second quarter of 2020.