Provident Financial Services (PFS) in Jersey City, N.J., has agreed to buy Team Capital Bank in Bethlehem, Pa.

The $7.3 billion-asset Provident will pay $122 million in cash and stock for the $949 million-asset Team Capital. The seller also has 12 branches, $590 million in loans and $745 million in deposits.

Three-fourths of the consideration will involve stock, and John Pugliese, Team Capital's chairman, will join Provident's board.

"We're very pleased with the acquisition of Team Capital Bank, a commercially-oriented bank with solid asset quality," Christopher Martin, Provident's chairman, president and chief executive, said in a press release. "This merger will establish an important presence for Provident in eastern Pennsylvania, and it nicely complements and strategically adds to our franchise in contiguous markets."

Martin added that the acquisition "presents a great opportunity to add scale to Team Capital's commercial lending operations and for the retail bank to increase its market share."

RBC Capital Markets was Provident's financial advisor, and Luse, Gorman, Pomerenk and Schick served as legal counsel. Keefe Bruyette & Woods served as financial advisor to Team Capital, which also received a fairness opinion from Griffin Financial Group. Windels, Marx, Lane & Mittendorf served as Team Capital's legal counsel.

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