Pittsburgh-based Mellon Bank Corp. entered a definitive agreement to acquire Glendale Bancorp., a bank-holding company in Vorhees, N.J., for $28 million, Mellon reported Friday.
Vorhees, about 15 miles west of Philadelphia, offers Mellon access to New Jersey commuters. Mellon has 121 branches in Philadelphia and no branches in New Jersey.
"If you're in the Philadelphia market, you need a banking presence on the New Jersey side," said analyst Dennnis F. Shea of Morgan Stanley.
One of Mellon's competitors, Philadelphia-based CoreStates Financial Corp., has 152 New Jersey branches. Edison, N.J.- based Midlantic has 24 branches in Philadelphia County.
The acquisition means Mellon will take over Glendale's six branches, which are in southwestern and central New Jersey. Mellon will also capture Glendale's $247 million in assets and $229 million in deposits.
