Valley National Bancorp, which operates in New Jersey and New York, is considering acquiring Westchester Bank Holding Corp. in White Plains, New York, for $ 220 million.
Valley said the deal will give it a physical footprint and additional expertise in commercial lending in the affluent Westchester County market. Valley is already ready on the market.
Westchester Bank has assets of $ 1.3 billion, loans of nearly $ 1 billion, and deposits of $ 1.1 billion. It has seven branches.
The combined company is said to have 233 branches, $ 43 billion in assets and $ 34 billion in loans and $ 34 billion in deposits.
The acquisition, which is expected to close in the fourth quarter, is expected to have an accretion effect of 1% on Valley earnings at close.
While this is a relatively small deal for Valley, the company’s chief executive said it was “strategically compelling” as it fills a key geographic gap within the buyer’s franchise in the New York subway. In addition to New York and New Jersey, Valley has branches in Florida and Alabama.
“The ability to offer Valley’s full suite of financial solutions to Westchester business clients, along with the support of our larger balance sheet and significant capital resources, should drive significant growth for Valley in the County of Westchester market. Westchester, ”Ira Robbins, chief executive officer of Valley, said in a press release Tuesday.
Under the terms of the agreement, Westchester shareholders will receive 229,645 Valley common shares for each Westchester common share they own. Based on Valley’s closing price on Monday, Westchester shareholders will receive approximately $ 210 million in Valley common stock. The existing Westchester options will be cashed for $ 10 million.