PRINCETON, NJ–Investors Bancorp, Inc. and The Bank of Princeton, a private bank, May 3, announced a merger agreement; the Bank of Princeton will become Investors Bank.
The Bank of Princeton branch located in downtown New Brunswick on the ground floor of the One Spring Street highrise will become an “Investors Bank,” which is owned by Investors Bancorp, Inc.
The “community bank” was first started in 2007, and since then, it has grown to include 10 branches in New Jersey and another three in Philadelphia that operate under the brand name “MoreBank.”
“Investors Bank brings additional retail and business banking products, expanded lending capabilities and capital strength that will enable the combined company to better compete in our marketplace. Our officers and employees look forward to joining the Investors Bank team,” said Edward Dietzler, The Bank of Princeton’s President.
“With approximately $22 billion in assets post-closing, Investors Bancorp will be positioned to deliver a wide range of comprehensive retail and commercial banking services through a combined network of 156 branches throughout the Philadelphia to New York City corridor,” says a press release announcing the merger.
The release notes that Mercer County residents have incomes that are well above national and regional averages.
For example, West Windsor, the home of the busy Northeast Corridor train station known as “Princeton Junction,” has scores of million dollar and above homes.
Plus, building there is robust, with new condominiums and townhouses being constructed in the area. Additionally, neighboring East Windsor has seen tremendous growth in the past two decades.
The West Windsor-Plainsboro school district, which serves communities in Mercer and Middlesex County respectively, is ranked among one of the top districts in the Garden State.
“We are pleased to partner with The Bank of Princeton, a commercial bank with a track record of strong profitability and growth,” said Investors Bancorp’s President & CEO, Kevin Cummings.
“This merger will establish an important presence for Investors Bank in Princeton and will introduce us to the Philadelphia market. It will also add scale to our current Mercer County markets.”
Shareholders of The Bank of Princeton will receive a combination of stock and cash valued at $154 million, based on Investors Bancorp’s May 3 closing price of $11.43 per share, according to the release.
“Under the terms of the agreement, 60% of The Bank of Princeton’s common shares will be converted into Investors Bancorp common stock and the remaining 40% will be exchanged for cash,” reads the release. “The Bank of Princeton’s stockholders will have the option to elect to receive either 2.633 shares of Investors Bancorp common stock or $30.75 in cash for each common share of The Bank of Princeton, subject to proration to ensure that in the aggregate 60% of The Bank of Princeton’s shares will be converted into Investors Bancorp common stock.”
The Bank of Princeton recently had assets of $1 billion, with loans of $842 million and deposits of $820 million. Last year, its net income was $11 million.
Subject to standard approvals, the deal is expected to close later this year.
Dave is an award-winning business reporter who has authored over 200 articles for New Brunswick Today.