New Jersey-based Valley National Bancorp has agreed to acquire Florida-based USAmeriBancorp in a deal valued at around $816m.
Under the terms of the deal, each USAB shareholder will be entitled to receive 6.1 shares of Valley common stock for each share held.
Valley said that the deal will strengthen its presence in Tampa Bay, as well as help it establish a foothold in Birmingham, Montgomery, and Tallapoosa areas in Alabama where USAmeriBank has 15 offices.
The combined group will have nearly $28bn in assets, $21bn in loans, $21bn in deposits, and 239 branches across New Jersey, New York, Florida, and Alabama.
The deal already secured the go-ahead from the boards of directors of both companies. It is anticipated to be concluded in the first quarter of 2018, subject to shareholder and regulatory approvals.
USAB’s key team leaders will join Valley as part of the deal, while USAB chairman Jennifer Steans will join the board of directors of Valley.
Valley National Bancorp chairman and CEO Gerald Lipkin said: “This will be our third acquisition in Florida since 2014 and is consistent with our goal to expand our franchise in the high growth markets of Florida. USAB has a strong record of profitability and growth. We are excited about our collaboration with Joseph V. Chillura, CEO of USAB, who will join Valley as a key member of our executive team.”