Roundup: N.J.'s Summit Wraps Up $1.1 Billion Acquisition

Summit Bancorp said it bought $5.5 billion-asset Collective Bancorp, a thrift based in Egg Harbor City, N.J.

Collective's shareholders, who approved the transaction two weeks ago, will receive 0.895 of a Summit common share for each share they own. The deal, at the close, was valued at about $1.1 billion.

The transaction boosts $29 billion-asset Summit's deposit market share in New Jersey to third in the state, behind First Union Corp. and PNC Bank Corp.

Collective has deposits of $3.5 billion. Collective Bank has 82 branches.

Summit expects to take $18 million, or 25%, out of Collective's expense base.

A Summit spokeswoman said that although there are about 25 Summit and Collective branches that overlap in certain regions, management has not yet determined which branches will be closed or consolidated.

For reprint and licensing requests for this article, click here.
MORE FROM AMERICAN BANKER