Investors Bancorp Enters Philadelphia with Bank of Princeton Deal
Investors Bancorp in Short Hills, N.J., has agreed to buy Bank of Princeton in Princeton, N.J.
The $21 billion-asset Investors said in a press release late Tuesday that it will pay $154 million in cash and stock for the $1 billion-asset Bank of Princeton. The deal is expected to close in the fourth quarter.
Bank of Princeton has 13 branches, including locations around Philadelphia. The bank also has $842 million in loans and $820 million in deposits.
"This merger will establish an important presence for Investors … in Princeton and will introduce us to the Philadelphia market,” Kevin Cummings, Investors’ president and chief executive, said in the release.
Investors said it expects the deal to be 6% to its 2017 earnings per share and 2% dilutive to tangible book value. It should take about 3.5 years to earn back the dilution to tangible book value. Investors also said it expects to incur $6 million in after-tax restructuring costs.
RBC Capital Markets and Luse Gorman advised Investors; Keefe, Bruyette & Woods provided a fairness opinion. Sandler O'Neill and Stevens & Lee advised Bank of Princeton.