Two state-based banks will merge in a deal valued at $740 million.
According to Valley, the acquisition will double its market share in Bergen County and bolster its presence in Hudson County. The company also said the deal would increase capital, allowing for greater balance sheet optionality and its ability to accelerate strategic initiatives.
At closing, the combined company is expected to have approximately $38 billion in assets, $30 billion in loans, $29 billion in deposits, and 245 branches across New Jersey, New York, Florida and Alabama.
“Oritani’s conservative credit culture, combined with their customer focus should mesh seamlessly with that of Valley and our vision forward,” Valley President and Chief Executive Officer Ira Robbins said in a prepared statement.
“This capital-enriching transaction will enable Valley to continue to focus on improving the growth profile throughout its entire franchise, while providing enhanced products, services and delivery channels to Oritani’s existing customer base. We are excited about this in-market combination and the synergies that it will bring us,” he added.
Having been unanimously approved by the boards of directors of both companies, the deal is expected to close late in the fourth quarter of 2019, subject to standard approvals and customary conditions.
J.P. Morgan Securities LLC served as financial advisor to Valley National Bancorp, with Day Pitney LLP serving as legal counsel. Oritani Financial Corp. was advised by Keefe, Bruyette & Woods, a Stifel Company, and the law firm of Luse Gorman PC.