Under the terms of the agreement Greater Hudson will merge into ConnectOne Bank and each outstanding share of Greater Hudson Bank common stock will be exchanged for 0.245 shares of ConnectOne common stock. The transaction is presently valued at $76.3 million, or approximately $6.16 per share, based upon the closing common stock price of $25.15 for ConnectOne Bancorp as of July 11, 2018.
The transaction has been unanimously approved by the boards of both banks and is expected to be completed early in the first quarter of 2019.
“This transaction reflects a financially attractive, compelling expansion opportunity to combine with a similarly-minded, commercially-focused lender operating within the 75-mile radius of NYC where ConnectOne has excelled,” said Frank Sorrentino, ConnectOne’s CEO, in an announcement.
The acquisition gives ConnectOne Bank a presence in Rockland, Westchester and Orange Counties which surround New York City. Greater Hudson will also add $401.7 million in deposits to ConnectOne Bank, as well as a $340.7 million loan portfolio, as well as employees who specialize in lending and deposits in those regions. The acquisition also increases ConnectOne’s commercial and industrial loan capabilities.
As of March 31, ConnectOne has $5.7 billion in total assets, deposits of $4.2 billion, and a $4.5 billion loan portfolio.