ConnectOne announces in-market deal for Bancorp of New Jersey
ConnectOne Bancorp in Englewood Cliffs, N.J., has agreed to buy Bancorp of New Jersey in Englewood Cliffs.
The $6.1 billion-asset ConnectOne said in a press release Friday that it will pay $113 million in cash and stock for the $925 million-asset parent of Bank of New Jersey. The deal, which is expected to close in the first quarter, priced Bancorp of New Jersey at 122% of its tangible book value.
Bancorp of New Jersey has nine branches, $782 million in loans and $762 million in deposits.
ConnectOne said it expects the deal to be 5% accretive to its earnings per share in the first full year of combined operations. It should take less than four years for ConnectOne to earn back a projected 3% dilution to its tangible book value.
“This is a financially savvy, in-market acquisition with strong economics to enhance our powerful franchise,” Frank Sorrentino, ConnectOne’s chairman and CEO, said in the release.
The acquisition “demonstrates our commitment to deliver attractive long-term returns for our shareholders and strongly supports our defined growth strategy which includes opportunistic growth through M&A,” Sorrentino added.
One Bancorp of New Jersey director will join ConnectOne’s board.
ConnectOne expects to incur $10 million in merger-related expenses. The company plans to cut 60% of Bancorp of New Jersey’s annual noninterest expenses.
ConnectOne was advised by Keefe, Bruyette & Woods and Squire Patton Boggs. Bancorp of New Jersey was advised by Sandler O’Neill and Holland & Knight.