New Jersey’s 1ST Constitution Bancorp, the parent of 1ST Constitution Bank, has agreed to buy local peer Shore Community Bank in a stock-cash deal worth around $53.1m.
Shore will merge with and into 1ST Constitution Bank after deal completion in the final quarter of this year.
Shore has five offices in Toms River, Jackson and Manahawkin, New Jersey.
The addition of these offices will increase 1ST Constitution’s branch count to 26.
The branches of the merged entity will be spread out across Bergen, Middlesex, Monmouth, Mercer, Ocean and Somerset Counties, New Jersey.
The deal will add $274m in assets to 1ST Constitution’s books, taking its total assets under management to nearly $1.5bn.
Shareholders of Shore will be entitled to get 0.8786 of a share of 1ST Constitution common stock, a cash payment of $16.50, or a combination of 1ST Constitution stock and cash for each share held.
1ST Constitution Bancorp president and CEO Robert Mangano said: “We are pleased to be combining with Shore Community Bank and expanding our presence into several new markets in Ocean County. Northern and Central Ocean County represent attractive markets with desirable demographic characteristics and growth opportunities,”
“Shore is a high performing community bank with strong core deposits and solid loan growth.
“The merger has strategic and financial merit and will generate a number of benefits to both our existing shareholders, and our new shareholders from Shore Community Bank.”
The transaction already secured the green light from the two companies’ boards. It is currently pending shareholder and regulatory nod.