Lakeland Bancorp in Oak Ridge, N.J., has agreed to buy Pascack Bancorp in Waldwick, N.J.
The $3.7 billion-asset Lakeland said in a press release Tuesday that it will pay $43.8 million, or $11.35 a share, in cash and stock for the $403 million-asset parent of Pascack Community Bank. The acquisition is expected to close in the fourth quarter.
Lakeland said the transaction is expected to be about 4.5% accretive to its 2016 earnings per share. The company said it should earn back the roughly 2.7% dilution to tangible book value in less than four years.
Keefe, Bruyette & Woods and Lowenstein Sandler advised Lakeland Bancorp. Sandler O'Neill, FinPro Capital and Windels Marx Lane & Mittendorf advised Pascack.
