Valley National Bancorp announced a definitive agreement to acquire Wayne (N.J.) Bancorp for $69.2 million of stock.
Valley National, also based in Wayne, would pay two times book value for $272 million-asset Wayne Bancorp, which has six branches in Passaic and Bergen counties.
Stockholders of Wayne Bancorp are to exchange each of their shares for 1.1 share of Valley National common stock. Wayne also would grant Valley National the option to buy 400,000 authorized but unissued common shares.
A Valley National spokesman said the company may close one branch as a result of the deal, which was announced May 29.
The sale, which awaits regulatory and shareholder approval, is expected to close in the fourth quarter.