Valley National Bancorp, which operates in New Jersey and New York, on June 29 announced it agreed to acquire Westchester Bank Holding Corp. in White Plains, N.Y., for $220 million.
The addition of Westchester’s seven branches will bring Valley’s branch count to 233, comprised of 131 in New Jersey, 45 in New York, 41 in Florida, and 16 in Alabama. The acquisition will provide Valley a physical footprint and additional commercial lending expertise in the Westchester County market.
Westchester Bank has total assets of $1.3 billion, total loans of more than $0.9 billion, and total deposits above $1.1 billion across its seven branch network, as of March 31, 2021.
Under the terms of the merger agreement, the stockholders of Westchester will receive 229.645 shares of Valley common stock for each share of Westchester common stock they own. Based on Valley’s closing stock price on June 28, 2021, Westchester’s stockholders will receive approximately $210 million in Valley common stock. Existing Westchester options will be cashed out for approximately $10 million in cash.
Ira Robbins, Valley’s chairman, president and CEO commented that, “[u]nder John Tolomer’s leadership, Westchester has evolved into a high-performing and growth-oriented commercial bank in a desirable market. Westchester’s conservative credit culture and high-touch approach to commercial banking align extremely well with Valley’s own value proposition.”
“We look forward to having John and his team join Valley where they will continue to drive growth in the Westchester County market that they know so well,” he added. “The ability to offer Valley’s comprehensive suite of financial solutions to Westchester’s commercial customers, along with the support of our larger balance sheet and significant capital resources, should drive meaningful growth for Valley in the Westchester County market. We are excited to support John and his team in the next evolution of their company as a part of the Valley family.”
Following the closing, Westchester President and CEO John Tolomer will join Valley as market president leading Valley’s Westchester County efforts.
“We are thrilled about our new partnership with Valley and the opportunities for growth that it will provide for our employees and customers,” Tolomer said. “The infrastructure and culture that has been built at Valley over the past few years will enable our customers to access a robust product offering while still receiving access to the local decision making and exceptional service they have become accustomed to at The Westchester Bank.”
The acquisition is expected to close in the fourth quarter of 2021, subject to standard regulatory approvals, approval of Westchester stockholders, as well as other customary conditions.