In the news … Lakeland Bank , Spencer Savings Bank , Investors Bank and Blue Foundry Bank .

Compiled by John Joseph Parker Contributing Editor

As a snapshot of banking in New Jersey , merger and acquisition activity can be seen at leading banks , including Lakeland Bank , Spencer Savings Bank and Investors Savings Bank . Blue Foundry Bank has opened new Administrative Offices at 7 Sylvan Way in Parsippany , New Jersey .

Lakeland Bancorp , Inc . to Acquire 1st Constitution Bancorp

The Boards of Directors of Lakeland Bancorp , Inc . ( Lakeland ) the parent company of Lakeland Bank , and 1st Constitution Bancorp ( 1st Constitution ), the parent company of 1st Constitution Bank , have entered into a definitive Agreement and Plan of Merger ( Merger Agreement ), under which Lakeland will acquire 1st Constitution . The combined organization will have approximately $ 9.6 billion in assets and will rank as the 5th largest bank headquartered in New Jersey . The merger brings together two high-performing companies with complementary geographies and business lines .

Lakeland will acquire all of the outstanding shares of 1st Constitution in exchange for common shares of Lakeland and will cash out outstanding 1st Constitution options . The exchange ratio will be fixed at 1.3577 Lakeland shares for each 1st Constitution share , resulting in an aggregate transaction value of approximately $ 244.4 million , or $ 23.53 per share , which represents a 14 percent premium over the closing sale price per share of 1st Constitution common stock on July 9 , 2021 .

“ We are delighted to be combining with 1st Constitution and expanding Lakeland ’ s presence into central New Jersey ,” says Lakeland and Lakeland Bank President and CEO Thomas J . Shara . “ This business combination provides attractive financial attributes to shareholders of both Lakeland and 1st Constitution . This merger is consistent with our recent initiatives to expand into desirable markets . We look forward to working with 1st Constitution in delivering a broad array of business and consumer products into our expanded marketplace .”

The Merger Agreement has been unanimously approved by the Boards of Directors of both companies . The merger is expected to close in the fourth quarter of 2021 or early first quarter 2022 , subject to satisfaction of customary closing conditions , including receipt of required regulatory approvals and approval by the shareholders of Lakeland and 1st Constitution . In the transaction , 1st Constitution will merge into Lakeland , and 1st Constitution Bank will merge into Lakeland Bank , with Lakeland and Lakeland Bank being the surviving entities .

Key transaction highlights are that it continues Lakeland ’ s growth and positions the bank to efficiently cross the $ 10 billion asset threshold in the future ; and it provides Lakeland with entry into attractive new markets in Mercer , Middlesex and Monmouth counties and enhances its presence in Ocean and Bergen counties .

Keefe , Bruyette & Woods , a Stifel Company , served as financial advisor and Luse Gorman , PC served as legal counsel to Lakeland . Raymond James served as financial advisor and Day Pitney LLP served as legal counsel to 1st Constitution .

Spencer Savings Bank SLA and Mariner ’ s Bancorp

Spencer Savings Bank , SLA ( Spencer ) and Mariner ’ s Bancorp / Mariner ’ s Bank jointly announced that they have entered into a definitive stock purchase agreement pursuant to which Spencer will acquire Mariner ’ s Bank in an all-cash transaction . Under the terms of the agreement , Mariner ’ s Bank will merge into Spencer , with Spencer the surviving entity . The merger enhances and expands Spencer ’ s presence in Bergen County , New Jersey , with the addition of six full-service branch locations expanding into eastern and northern Bergen County and bringing together two community-focused banks .

As of March 31 , 2021 , Mariner ’ s , headquartered in Edgewater , New Jersey , had approximately $ 414 million of total assets , $ 348 million of loans and $ 362 million of deposits .

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