SB One Bancorp in Rockaway, N.J., has agreed to buy Enterprise Bank N.J. in Kenilworth.
The $1.4 billion-asset SB One said in a press release Wednesday that it will pay $48.2 million in stock for the $244 million-asset Enterprise. The deal is expected to close in the fourth quarter.
Enterprise has four branches, $230 million in loans and $187 million in deposits.
“This partnership helps us expand our presence in key markets and provides us the ability to add additional talent, which will make all of the difference as we continue to grow,” Anthony Labozzetta, SB One’s president and CEO, said in the release. “We are confident this partnership will create enhanced value for our combined employees, customers, shareholders and the communities we serve.”
The deal is expected to be 8% accretive to SB One's 2019 earnings per share. It should take less than a year to earn back the expected 1% dilution to SB One’s tangible book value.
SB One said it plans to cut about 30% of Enterprise’s annual noninterest expenses.
Donald Haake, Enterprise’s CEO, will become a senior executive vice president of regional banking of SB One’s bank. Two Enterprise directors will join SB One’s board.
Keefe, Bruyette & Woods and Hogan Lovells advised SB One. FinPro Capital Advisors and Windels Marx Lane & Mittendorf advised Enterprise.
