Bridge Bancorp, the parent of BNB Bank, has entered into an all-stock ‘merger of equals’ agreement with Dime Community Bancshares, the parent of Dime Community Bank.
The deal, valued at nearly $489m, has been unanimously approved by the two companies’ boards.
Under the agreement, Dime will merge into Bridge, and Bridge will be the surviving entity.
Similarly, Dime Community Bank will merge into BNB Bank, and leave BNB Bank as the surviving institution.
The combined entity will have over $11bn in assets, $8bn in deposits, and 66 branches across New York, US.
Upon transaction completion, Dime shareholders will receive 0.6480 shares of Bridge common stock for each share held.
Dime shareholders will own a 52% stake in the combined entity, while the remaining will be held by Bridge shareholders.
The combined group will operate under the brand name ‘Dime Community Bancshares’ and the merged banks will operate under the ‘Dime Community Bank’ name.
Bridge Bancorp president and CEO Kevin O’Connor said: “This highly compelling combination will allow us to build on our complementary strengths and provide significant value for shareholders.
“Our enhanced branch footprint and increased capital base will allow us to better serve the needs of our customers.”
Dime CEO Kenneth Mahon said: “In Bridge, we have aligned ourselves with a company that has a well-constructed commercial bank balance sheet, shares our values, our community focus, and our commitment to building and retaining highly-talented staffs.”
The merger is expected to close in the first quarter of 2021. It currently awaits shareholder and regulatory approvals.