Investors Bancorp to double its Long Island operations with Gold Coast deal
Investors Bancorp in Short Hills, N.J., has agreed to buy Gold Coast Bancorp in Islandia, N.Y.
The $27.6 billion-asset Investors said in a press release Wednesday that it will pay $63.6 million in cash and stock for the $563 million-asset Gold Coast. The deal is expected to close in the first quarter.
Gold Coast has seven branches, $463 million in loans and $486 million in deposits.
"This transaction represents an effective use of capital and roughly doubles our presence in suburban Long Island," Kevin Cummings, Investors' chairman and CEO, said in the release. “This transaction ... deepens our presence in this large, affluent market."
Investors said it expects the transaction to be 2.5% accretive to its earnings per share, including cost savings. It should take three years for Investors to earn back any dilution to its tangible book value.
John Tsunis, Gold Coast’s chairman and CEO, will serve as chairman of a regional advisory board.
Lazard and McCarter & English advised Investors. Keefe, Bruyette & Woods and Windels, Marx, Lane, & Mittendorf advised Gold Coast. Boenning & Scattergood provided Gold Coast with a fairness opinion.
The acquisition is the first for Investors since it was freed in December from an informal agreement tied to Bank Secrecy Act compliance.