Kearny expanding in northern New Jersey with MSB purchase
Kearny Financial in Fairfield, N.J., has agreed to buy MSB Financial in Millington, N.J.
The $6.6 billion-asset Kearny said in a press release Thursday that it will pay $94 million in cash and stock for the $591 million-asset MSB. The deal is expected to close in the second quarter.
With the acquisition, Kearny will enter northern New Jersey’s Somerset and Morris counties.
MBS has $513 million in loans and $476 million of deposits.
“We are two strong community banks with well over two combined centuries of rich history serving our clients and the surrounding communities,” Craig Montanaro, Kearny’s president and CEO, said in the release. “We … feel that our expanded product suite and focus on digital technologies will offer an opportunity to further grow the combined franchise, which makes this a winning combination for all concerned.”
Kearny said it expects the deal to be 11% accretive to its earnings per share. It should take about three years for Kearny to earn back an expected 1.6% dilution to its tangible book value.
PNC FIG Advisory and Luse Gorman advised Kearny. FinPro Capital Advisors and Jones Walker advised MSB.