Haven Bancorp in Hoboken has agreed to buy Hilltop Community Bancorp (HTBC) in Summit in a merger of New Jersey banks.
Haven will pay $26.9 million in cash for the $168 million-asset Hilltop, it said Wednesday. The price of $9.42 a share is a 52% premium to Hilltop's Tuesday closing price of $6.20 a share. The companies expect to complete the deal in the fourth quarter.
Haven said that Mortimer O'Shea, Hilltop's president and chief executive, will join its board. The acquisition will add three branches to the $694 million-asset Haven's six-branch network.
"With this acquisition, Haven will move into three very strong local markets Summit, Berkeley Heights and Madison, be able to provide a wider range of lending and deposit services, attain greater scale and efficiencies, diversify its balance sheet and increase earnings," John Wessling, Haven's president and CEO, said in the release.
Ambassador Financial Group advised Haven; Griffin Financial Group advised Hilltop.