First Bank in Hamilton, N.J., has agreed buy Delanco Bancorp in New Jersey.
The $1.2 billion-asset First Bank said in a press release Wednesday that it will pay $13.5 million in stock for the $126 million-asset Delanco. The deal, which is expected to close in the first quarter, prices Delanco at 99% of its tangible book value.
Delanco has two branches, $85 million in loans and $111 million in deposits.
“We believe this to be another solid strategic transaction which expands our service footprint into Burlington County, an area with compelling customer demographics and excellent growth potential,” Patrick Ryan, First Bank’s president and CEO, said in the release.
“This transaction will further strengthen our balance sheet by diversifying our loan portfolio and providing expanded access to cost-effective retail funding,” Ryan said.
The deal is expected to be immediate accretive to First Bank’s earnings per share. There should be “minimal” dilution to the company’s tangible book value, the release said.
Sandler O’Neill and Covington & Burling advised First Bank. FinPro Capital Advisors and Kilpatrick Townsend & Stockton advised Delanco.
