1st Constitution Bancorp (FCCY) in Cranbury, N.J., has agreed to acquire Rumson-Fair Haven Bank and Trust Co. (RFHB) in Rumson, N.J.
The $813 million-asset 1st Constitution plans to pay $24.3 million in cash and stock for the $214 million-asset Rumson-Fair Haven, the companies announced Thursday. The purchase price of $7.50 per share of Rumson-Fair Haven stock represents a discount of 10 cents per share, or 1%, to Rumson-Fair Haven's Wednesday closing price.
The payment is expected to be 60% in cash and 40% in 1st Constitution common stock. The deal is expected to be completed in the first quarter.
It would allow 1st Constitution to expand into new territory in New Jersey. Rumson-Fair Haven has five branches in Rumson and the surrounding area in Monmouth County. 1st Constitution has 14 branches in Bergen, Mercer, Middlesex and Somerset counties.
"We are delighted to combine with Rumson-Fair Haven Bank and Trust, expanding 1ST Constitution's presence into Monmouth County in several very attractive markets," said Robert Mangano, 1st Constitution's president and chief executive. "As we integrate Rumson's attractive retail network with 1ST Constitution's wide array of banking products and services, we believe will be able to better serve our combined customer base and continue to build shareholder value."
1st Constitution raised $7 million late last year through a rights offering.