Bank Leumi USA is now part of Valley.
Valley National Bancorp announced it completed its acquisition of Bank Leumi Le-Israel Corp. – the U.S. subsidiary of Bank Leumi Le-Israel B.M. and parent company of Bank Leumi USA, effective April 1.
The deal was announced last September and at valued at $1.1 billion then.
Valley will issue approximately 85 million shares of common stock and pay $113 million in cash in the transaction. Common stockholders of Leumi USA will receive 3.8025 shares of Valley common stock, and $5.08 in case for each Leumi USA common share that they own.
As of Dec. 31, 2021, the most recent information available, Bank Leumi had approximately $8.3 billion in assets, $5.8 billion of diverse commercial loans and $7.1 billion of low-cost deposits. Valley had total assets of approximately $43 billion.
Robbins
“This transaction further solidifies Valley’s position as one of the premier full-service commercial banks in the country,” Valley CEO Ira Robbins said in a statement. “We are incredibly excited about the new business capabilities and the differentiated growth opportunities that Bank Leumi will bring to our combined organization.
“On behalf of our board of directors and our executive leadership team, I’d like to welcome Bank Leumi clients and employees to the Valley family. We look forward to continuing our journey together,” he added.
According to Valley, the acquisition supplements its commercial banking prowess, while adding new capabilities in technology and private banking. The combined entity’s enhanced scale positions it to capture diverse commercial growth opportunities across its markets, which span New Jersey, New York, Florida, Alabama, California and Illinois.
At the end of 2021, Valley closed iTs acquisition of The Westchester Bank Holding Corp. and its wholly owned subsidiary The Westchester Bank. According to the buyer’s 2021 Fourth Quarter results, the total consideration for the acquisition was $211.1 million.
