Founded in 2007, Capital Bank serves the Southern New Jersey and greater Philadelphia metro markets through four branches located in Cumberland, Gloucester and Atlantic counties, and a loan production office in Burlington County.
The merger complements Capital Bank’s expertise in serving small- and medium-sized businesses with OceanFirst’s commitment to growing its commercial banking platform.
Under the terms of the agreement, which was unanimously approved by the boards of directors of both companies, shareholders of Capital Bank would receive 1.25 shares of OceanFirst common stock for each share of Capital Bank common stock.
The transaction is expected to close in the first quarter of 2019, subject to approvals.
“We are excited for Capital Bank stakeholders to join the OceanFirst family, and we will use our shared knowledge of Southern New Jersey and the greater Philadelphia metro area to continue to enhance our leadership in these core markets,” said Christopher Maher, OceanFirst Financial Corp. chairman and CEO, in a prepared statement. “This transaction reflects a financially attractive in-market acquisition with low-risk that aligns with OceanFirst’s strategic objectives. We look forward to continuing to provide our clients best-in-class service and delivering enhanced value to our shareholders.”
Added David Hanrahan, president and CEO of Capital Bank, also in a statement: “We are excited to announce our plans to join the OceanFirst team. Through access to additional product lines, enhanced operating scale, and increased shareholder liquidity, we will be better able to serve our customers, shareholders, and communities in which we operate.”
Piper Jaffray & Co. served as financial advisor to OceanFirst and Skadden, Arps, Slate, Meagher & Flom LLP served as its legal counsel. Boenning & Scattergood Inc. served as financial advisor to Capital Bank and Stevens & Lee as its legal counsel.