Lakeland Bancorp Inc., parent of Lakeland Bank, is acquiring Pascack Bancorp Inc., the parent of Pascack Community Bank, the two companies announced Tuesday.
The definitive agreement to merge will see Waldwick-based Pascack become part of the Oak Ridge-based Lakeland in a deal valued at approximately $43.8 million.
“We are delighted to be combining with Pascack, and expanding Lakeland’s presence in Bergen and Essex counties,” Thomas J. Shara, Lakeland’s chief executive officer and president, said in a prepared statement. “Both banks share a focus on community banking and providing the highest level of service to our customers. We look forward to working with the Pascack team in delivering to all of our customers and shareholders the benefits that we expect from this transaction.”
Under the terms of the deal, Pascack common stockholders would receive either 0.9576 shares of Lakeland stock or $11.35 in cash for each Pascack share they own. The deal would end up being 90 percent stock and 10 percent cash based on the merger terms.
The $11.35 price represents a 53.4 percent premium to Pascack’s July 30 closing price, the banks said.
“In addition to sharing a commitment to providing first-class customer service, we each bring complementary products and services to the combined company that we believe will be well-received by our customers, and ultimately benefit our shareholders,” Nancy E. Graves, Pascack’s CEO and president, said in a statement.
Lakeland has 48 branches in New Jersey, plus five regional commercial lending centers and two commercial loan production offices. Pascack has eight branches in the northeastern part of the state.
“We are very excited to be partnering with such a strong, well-managed organization as Lakeland,” Jon F. Hanson, Pascack’s chairman, said in a statement. “Together, our franchises create a great presence in one of the most attractive banking markets in the country.”
Both boards of directors have unanimously approved the merger, which is expected to close in the fourth quarter, subject to customary conditions and approvals.
Keefe, Bruyette & Woods served as Lakeland’s financial adviser and Lowenstein Sandler LLP as its legal adviser. Sandler O’Neill & Partners L.P. and FinPro Capital Advisors Inc. were Pascack’s financial advisers, while Windels Marx Lane & Mittendorf LLP was its legal adviser.
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