Valley National Bancorp said Friday that it has a deal to acquire Ramapo Financial Corp. for $99 million in stock. The price equals about three times Ramapo's book value.
Ramapo, also in Wayne, is the holding company for Ramapo Bank, a $331 million-asset bank with eight branches in three northern New Jersey counties. The acquisition is expected to be completed by the end of the second quarter.
The agreement calls for Valley to exchange 0.425 shares of its common stock for each share of Ramapo in a tax-free exchange. The deal will be accounted for as a pooling of interests.
Valley National, which has $5.3 billion of assets, operates 105 branches in 10 New Jersey counties.
Shares of Valley fell $1.375 on Friday, to close at $27.625. Ramapo shares rose $2.75 to close at $10.875.