Carteret-based United Roosevelt Savings Bank and Garfield-based Wawel Bank jointly announced Monday that they have entered into an agreement and plan to merge.Under the agreement, United Roosevelt will acquire Wawel Bank for approximately $4.4 million, or $5.25 per share.
According to the banks, Wawel will merge into United Roosevelt, with United Roosevelt being the remaining division, to be followed by the merger of Wawel Financial Services MHC, the mutual holding company for Wawel Bank, into United Roosevelt MCH, the holding company for United Roosevelt, with United Roosevelt MHC remaining as well.
“This acquisition provides United Roosevelt with an excellent opportunity to expand in a strong northern New Jersey market. It provides a great opportunity to combine two community banks that share a deep commitment to their local markets. We believe that United Roosevelt will provide Wawel Bank customers with additional resources in the form of larger lending capacity, and additional products and support. We look forward to joining forces with Wawel Bank’s employees and customers and together growing our combined institution,” Kenneth R. Totten, CEO and president of United Roosevelt, said in a prepared statement.
“We are very excited to be partnering with such a growing, well-managed organization as United Roosevelt. We each have a similar hometown customer relationship focus that we believe will mesh well together under the banner of a much larger combined banking institution. I am confident that decisions will continue to be made locally by bankers with a vested interest in our communities,” George E. Niemczyk, CEO and president of Wawel Bank, said in a prepared statement.
The merger will cancel all outstanding shares of Wawel Bank, and all of Wawel Bank’s stockholders — other than Wawel MCH, which owns 60.8 percent of Wawel’s outstanding stock — will be entitled to $5.25 per share in cash by United Roosevelt.
Following the transaction, United Roosevelt will have approximately $163.1 million in total assets, $122.3 million in loans and $145.1 million in deposits with three branches serving the Middlesex County and Bergen County.
P&G Associates was the financial advisor and Stevens & Lee was the legal counsel to United Roosevelt. Sandler O’Neill & Partners L.P. was the financial advisor and Windells Marx Lane & Mittendorf, LLP was the legal counsel to Wawel Bank.