OceanFirst Financial in Toms River, N.J., has agreed to buy Ocean Shore Holding in Ocean City, N.J.

The $4.2 billion-asset OceanFirst said in a press release Wednesday that it will pay $145.6 million, or $22.47 a share, in cash and stock for the parent of the $1.1 billion-asset Ocean City Home Bank. The deal, which is expected to close by early next year, value Ocean Shore at 132% of its tangible book value.

Ocean City Home Bank has 11 branches, $818 million in deposits and $796 million in loans.

OceanFirst said it could take 3.7 years to earn back the acquisition's expected 3.1% dilution to its own tangible book value per share. The deal should by 5.4% accretive in 2018.

OceanFirst said it expects to incur $19 million in pretax merger-related costs, though it also plans to cut $12.4 million, about 53%, of Ocean Shore's noninterest expenses.

"This transaction represents a unique opportunity for OceanFirst to capitalize on its recent entry into Southern New Jersey through the acquisition of an extremely valuable deposit franchise coupled with significant efficiencies and low execution risk," Christopher Maher, OceanFirst's president and chief executive, said in the release. "Ocean Shore's residential focus creates strategic optionality for prudent commercial real estate growth with strong cash flows."

Steven Brady, Ocean Shore's president and chief executive, will become vice chairman of OceanFirst's southern New Jersey division.

OceanFirst completed the acquisition of Cape Bancorp earlier this year.

Piper Jaffray and Skadden, Arps, Slate, Meagher & Flom advised OceanFirst. Sandler O'Neill and Kilpatrick Townsend & Stockton advised Ocean Shore.

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