Columbia Financial in Fair Lawn, N.J., has agreed to buy Roselle Bank in New Jersey.
The $7.1 billion-asset Columbia said in a press release Tuesday that the deal should close in the second quarter. Columbia will issue about $95 million of stock its its mutual holding company as consideration for the $442 million-asset Roselle.
Roselle has four branches, $171 million in loans and $338 million in deposits.
Columbia will add one Roselle director to its board.
"The transaction will combine two community banks with strong, loyal customer bases, while expanding the Columbia … franchise in Union, Somerset and Hunterdon counties,” Thomas Kemly, Columbia's president and CEO, said in the release.
The deal is expected to be 4% dilutive to Columbia’s 2021 earnings per share due to the shares to be issued to Columbia's mutual holding company. The deal is projected to be accretive to Columbia's fully converted tangible book value.
Columbia will cut about 36% of Roselle's annual noninterest expense. Columbia expects to incur $9 million in merger-related expenses.
Columbia was advised by Boenning & Scattergood and Kilpatrick Townsend & Stockton. Roselle was advised by Sandler O'Neill and Luse Gorman.
