First Bank said Aug. 4 it will acquire two New Jersey branches from OceanFirst Bank.
The terms of the agreement provide for First Bank to acquire the owned premises and equipment of locations in Flemington and Monroe; all deposits associated with the branches–which totaled approximately $124 million as of June 30, 2021; as well as selected performing loans totaling approximately $14 million as of June 30, 2021.
The assets will be acquired at book value except for the owned premises, which will be acquired at appraised value. Deposits will be acquired for a 2% premium or approximately $2.5 million, utilizing June 30, 2021 deposit balances.
It is expected that the current staff of the branches will become employees of First Bank.
The two locations will continue operating as OceanFirst Bank branches until the transaction is approved and completed. Subject to regulatory approval, that is anticipated during the fourth quarter of 2021.
The acquisition will enhance First Bank’s existing New Jersey footprint and further strengthen its presence along the New York City to Philadelphia corridor.
“This transaction enables First Bank to realize additional scale in our targeted service area and acquire long-term low-cost core funding 35% below our current cost of funding, along with providing an opportunity for long-term value creation,” said President and Chief Executive Officer Patrick Ryan. “We believe that the integration experience we have gained in recent years, along with the excellent relationships we maintain with regulators, will enable a seamless transition with minimal disruption for all customers.”
Boenning & Scattergood Inc. acted as financial advisor to First Bank. Troutman Pepper provided legal counsel to First Bank and Luse Gorman PC provided legal counsel to OceanFirst Bank.