COVID-19 Put The Brakes On Mergers Like This One
June 25, 2020
The once-delayed merger between Staten Island-based Northfield Bank and New Jersey-based Victory State Bank is now moving forward rapidly. After approval by Victory State shareholders this week, the merger is expected to be completed by the close of business July 1.
The merger is expected to occur on or about the close of business on July 1, 2020, and based on such closing date, each share of Victory common stock will be exchanged for 2.0463 shares of Northfield common stock with fractional shares paid out in cash.
The COVID-19 pandemic had delayed the merger, which was originally announced in December 2019. Back then, bank officials said upon completion of the transaction, it is estimated that Northfield will have combined assets of $5.2 billion, loans of $3.5 billion, and deposits of $3.7 billion. No updated financial figures were given with this week’s announcement.
Back in December, the two banks said key transaction highlights include:
Key financial highlights include:
Ralph M. Branca, Victory’s president and CEO, will join Northfield in a leadership role for the Staten Island marketplace and Joseph J. LiBassi, its board chair, has entered into a consulting agreement for a three-year-period to assist in the transition.
Northfield Bank, founded in 1887, currently operates 37 full-service banking offices in Staten Island and Brooklyn, New York, and Mercer, Middlesex, Hunterdon and Union counties, New Jersey. Victory State Bank began operations in 1997 and operates six full-service locations in Staten Island.
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The Bottom Line
Most financial institutions have tremendous excess capacity in their existing branches today.