Provident Bank to acquire Lakeland Bancorp.
West Milford. Provident Financial Services and Lakeland Bancorp. have entered into a $1.3 billion merger agreement. It is expected to close by the second quarter of 2023.
| 30 Sep 2022 | 02:50
According to banking/financial reports on the internet Provident Financial Services Inc. and Lakeland Bancorp, Inc. have entered into a definitive $1.3 billion all stock merger agreement. The published information said this creates a preeminent super-community bank in the state, creating a financial institution that will have $25 billion in assets and $20 billion in total deposits.
The report said they will have approximately 4 percent of all bank deposits in New Jersey, which represents the second largest share of New Jersey bank deposits for institutions with less than $100 billion in assets.
Under terms of the merger agreement, unanimously approved by boards of both companies. Lakeland will merge with and into Provident with Provident the surviving corporation. The combined company will operate under the “Provident Financial Services Inc.” name and the combined bank will operate under the “Provident Bank” name. The administrative headquarters of the combined company will be in Islin.
“The combination of our companies will allow us to achieve substantially more for our clients, associates, communities and shareholders than we could alone,” Lakeland President and CEO Thomas J. Shara said in a statement. “I have tremendous respect for Tony Labozzetta, Chris Martin, Provident’ s management team and associates. We will continue to build upon and leverage our combined strengths as we focus on our future together.”
The combined company’s board of directors will have 16 directors including nine from Provident and seven directors from Lakeland.
The merger is expected to close in the second quarter of 2023, subject to satisfaction of customary closing conditions, including customary regulatory approvals and approval by the shareholders of each company, the report said.
Lakeland Bank was founded in 1969 by Bob Nicholson, John Fredericks and Bruce Bohuny. The three local businessmen recognized the need for a local bank that could conveniently service the area and support the community. The bank celebrated 50 years of relationship banking and community commitment in April 2019. It grew to over 50 offices throughout the state.
