Two small New Jersey start-ups have agreed to a merger of equals.
The $59.2 million-asset Highlands State Bank in Vernon would absorb the $45.2 million-asset Noble Community Bank in Sparta, the banks said Wednesday. Each one has a single branch.
Both banks opened their doors in 2005, and they have yet to become profitable, George E. Irwin, Highlands' president and chief executive officer, said in an interview Wednesday.
"But with this combination, being profitable should be a foregone conclusion," Mr. Irwin said. "We'll have the size that we need."
Ronald Dolfi, Noble's acting president since April, is expected to work at Highlands after the merger, though his title is still undetermined, Mr. Irwin said. Noble's previous president retired, he said.
The agreement calls for each share of Noble to be exchanged for 0.7953 shares of Highlands. The exchange ratio was based on the book value of each bank.
The transaction is expected to close next quarter.
