Provident New York Bancorp in Montebello said Wednesday that it has agreed to acquire Gotham Bank of New York for roughly $40.5 million in cash.
The $3.1 billion-asset Provident has 38 branches throughout the greater New York City area and its deal for the $419 million-asset Gotham would give the bank its first branch in Manhattan.
David S. Bagatelle, who was recently named Provident’s president of the New York City market, said that the bank plans to hire three to five New York City-based banking teams. Bagatelle is heading Provident’s expansion into New York City by focusing on middle-market commercial clients.
“As we put together our middle-market banking teams in New York City, Gotham provides a platform to expand that includes a core asset and deposit base, a long-term client base, an advantageous location in midtown Manhattan and an initial legacy client relationship team," Bagatelle said in a news release.
At Sept. 30, Gotham had $169 million in loans and $335 million of deposits. Additionally, less than 1% of Gotham’s loans were not current and its Tier 1 risk-based capital ratio totaled 16.64% at Sept. 30, according to the Federal Deposit Insurance Corp.
Provident said that the deal price is equal to roughly 1.25 times Gotham's tangible net worth and represents an estimated 3.3% premium on core deposits. The deal is expected to close in the third quarter and should be accretive to earnings in the first year, Provident said.