Valley National Bancorp in Wayne, N.J., has agreed to buy USAmeriBancorp in Clearwater, Fla.
The $23.4 billion-asset Valley said in a press release Wednesday that it will pay $816 million in stock for the $4.4 billion-asset parent of USAmeriBank. The deal, which is expected to close in the first quarter, prices USAmeriBancorp at 238% of its tangible book value.
USAmeriBank has 30 branches, $3.6 billion in loans and $3.5 billion in deposits.
Valley National would expand its operations in Florida, where it has announced three bank acquisitions since 2014. It would enter the Alabama cities of Birmingham, Montgomery and Tallapoosa where USAmeriBank has 15 branches.
Joseph Chillura, USAmeriBancorp’s CEO, will join Valley’s executive team as regional president of the Florida west coast and Alabama division. Jennifer Steans, the company’s chairman, is to join Valley’s board.
Valley said it expects the deal to be accretive to its earnings per share within a year of closing. The estimate includes a planned $75 million preferred stock offering tied to the transaction.
It should take less than five years for Valley to earn back any dilution to its tangible book value.
Valley was advised by Keefe, Bruyette & Woods; MG Advisors; and Day Pitney. USAmeriBancorp was advised by Sandler O'Neill, Hovde Group and Barack Ferrazzano Kirschbaum & Nagelberg.
Separately, Valley announced that its second-quarter profit rose 28% from a year earlier, to $50.1 million. The company kept costs in check while increasing its dealings in commercial real estate.