Kearny Financial Corp. (KRNY) in Fairfield, N.J., has agreed to buy Atlas Bank in Brooklyn, N.Y.
The $3.4 billion-asset Kearny will acquire Atlas's $113 million of assets and two branches in Brooklyn and Staten Island, according to a joint Thursday press release. Kearny currently has 41 branches in northern and central New Jersey.
The price of the deal was not disclosed. The companies expect to complete the acquisition in the second or third quarter.
Atlas's branches will continue to operate under their Atlas brand for at least a year after the merger, according to the release.
"We are extremely excited about our partnership with Atlas Bank," Kearny's president and chief executive Craig Montanaro said in the release. "While we have had a lending presence in the Brooklyn and Staten Island markets, this transaction provides us with an excellent platform to further grow and diversify our franchise there."
As part of the transaction, Kearny will issue additional shares of its common stock to its mutual holding company, Kearny MHC. The shares will be worth "an amount equal to the fair value of Atlas as determined by an independent appraiser," according to the release.
Spidi & Fisch served as Kearny's legal counsel and FinPro Capital Advisors acted as the company's financial advisor. Kilpatrick Townsend & Stockton acted as legal counsel for Atlas. Sandler O'Neill served as Atlas's financial advisor.