PRINCETON, N.J. -- UJB Financial Corp. entered into a definitive agreement to acquire Palisades Savings Bank of Ridgefield Park for $42.1 million in cash.
The acquisition, announced last week, will have little impact on the $14.2 billion-asset bank or its competitors, analysts say. UJB already has a strong presence where Palisades' eight branches are located, said Alex. Brown analyst John Heffern.
Palisades has five branches in Bergen County and three branches in Hudson County. In Bergen County, UJB already holds the most market share, with 27.6%. The acquisition would increase that share to 30%.
Committed to Growth
In Hudson County the acquisition increases UJB's market share from fourth with 11.9% to third with 14.3%
Just how this acquisition affects UJB's ability to maintain its own independence is uncertain, Mr. Hcffcrn said. He characterized the Palisades purchase as too small "to have an impact one way or the other."
UJB chairman and chief executive officer T. Joseph Scmrod said, in a published statement, that the bank is committed to growing by acquisition.
"UJB financial will continue to seek opportunities that will strengthen our franchise as we believe such actions will increase revenues and enhance "shareholder value," he said.
No Plans to Close Branches
A UJB spokeswoman said the acquisition will bring $275 million in deposits to the bank. Palisades and UJB both have branches in four towns in Bergen County, but the spokeswoman said the bank had no "definitive plans" to close any.
On Friday, UJB's stock was down 12.5 cents to $28.25.