OceanFirst Financial in Red Bank, N.J., has agreed to buy Capital Bank of New Jersey in Vineland for $80 million in stock.
The deal, which is expected to close in the first quarter, would strengthen the $7.6 billion-asset OceanFirst’s presence in New Jersey and Philadelphia.
The price is 172% of the $495 million-asset Capital Bank's tangible book value.
“We will use our shared knowledge of Southern New Jersey and the greater Philadelphia metro area to continue to enhance our leadership in these core markets,” said Christopher Maher, the chairman and CEO of OceanFirst.
Capital Bank, which opened in 2007, has four branches and one loan production office. It would provide OceanFirst with low-cost core funding, as well as expertise in banking small and midsize businesses, the companies said in a release late last week.
The companies’ boards unanimously approved the deal, but it still must be reviewed by regulators. Capital Bank shareholders would be entitled to receive 1.25 shares of OceanFirst common stock for each share of Capital Bank common stock.
“Through access to additional product lines, enhanced operating scale, and increased shareholder liquidity, we will be better able to serve our customers, shareholders and communities in which we operate,” David Hanrahan, Capital Bank President and CEO, said in the release.
Piper Jaffray & Co. advised OceanFirst, and Skadden, Arps, Slate, Meagher & Flom served as its legal counsel. Boenning & Scattergood advised Capital Bank, and Stevens & Lee served as its legal counsel.
