PRINCETON, N.J. - UJB Financial Corp. said Friday it has agreed to acquire Bancorp New Jersey in a combination cash and stock deal worth $89 million.

Based in Somerville, Bancorp New Jersey is a $471 million-asset holding company with 12 branches that have a total of $416 million in deposits.

Under the terms of the agreement, each Bancorp common share will be converted into either $43.10 in cash or between 1.5 and 1.8 shares of UJB's stock.

The exact ratio will be determined based upon the average stock price of the $15.4 billion-asset UJB over a pricing period prior to closing, UJB said.

The agreement calls for 60% of the Bancorp shares to be exchanged for UJB stock and the rest to be exchanged for cash.

The transaction is expected to close in the third quarter.

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