Bridge Bancorp (BDGE) in Bridgehampton, N.Y., has agreed to buy FNBNY Bancorp in Merrick, N.Y.
The $1.76 billion-asset Bridge will pay approximately $5.3 million in stock for FNBNY, the companies announced Monday. The price may increase or decrease, depending on the performance of a group of FNBNY's problem loans and on whether it recovers certain insurance claims, the companies said.
Bridge will need $20 million to $25 million more in Tier 1 capital to support the acquisition, it said. It expects to raise the money by issuing new capital or through balance-sheet management, it said.
FNBNY is the parent of the First National Bank of New York, which has $276 million in assets, $100 million in loans and $209 million in deposits. Bridge does not expect to close any of FNBNY's three branches after the deal closes.
"This transaction complements our existing network and enhances our asset generation capabilities," said Kevin O'Connor, chief executive of Bridge Bancorp, in a press release. "Our expanded branch network will allow us to serve a greater portion of the Long Island and metropolitan marketplace."
FNBNY bought Madison National Bancorp in Melville, N.Y., last year, after several delays while the Federal Reserve Board reviewed its holding company application. The deal was announced in 2010.
Bridge and FNBNY expect their merger to close in the first quarter of 2014, pending regulatory approval. RBC Capital Markets advised Bridge on the agreement and Keefe, Bruyette & Woods advised FNBNY.