Bridge Bancorp to Buy Community National in N.Y. for $141M

Bridge Bancorp in Bridgehampton, N.Y., has agreed to buy Community National Bank in Melville, N.Y.

The $2.2 billion-asset Bridge will pay $141 million, or $20.03 a share, in stock for the $945 million-asset Community National in a deal that is expected to close in the second quarter. The deal values Community National at 175% of its tangible book value.

Community National has 11 branches, $750 million in loans and $826 million in deposits.

The acquisition "continues our expansion into Nassau County and New York City in a meaningful way," Kevin M. O'Connor, Bridge's president and chief executive, said in a press release Monday. "Community National Bank's strong commercial banking expertise and presence in rich lending markets will accelerate our growth and enhance profitability."

Bridge said it expects the transaction to be 6% accretive to earnings per share next year, excluding merger costs, and roughly 10% accretive starting in 2016. Bridge said it should earn back the deal's 6% dilution to tangible book value per share in three years.

Bridge also said it plans to cut $8.5 million, or 35%, of Community National's annual core noninterest expenses, while incurring an after-tax restructuring charge of $12 million.

RBC Capital Markets and Luse Gorman Pomerenk & Schick advised Bridge, while Sandler O'Neill provided a second fairness opinion. Raymond James and Day Pitney advised Community National.

Bridge bought FNBNY Bancorp in February.