Christopher Martin, chairman and CEO of Provident Financial Services

ISELIN, NJ—Locally-based Provident Financial Services, Inc. announced on Thursday it had signed a definitive merger agreement with SB One Bancorp where it would acquire the Paramus-based bank for approximately $208.9 million.

The deal with SB One Bancorp, the parent of SB One Bank, would broaden Provident's operations in both New Jersey and New York State. The combined organization will have approximately $12 billion in assets and will rank as the third largest bank headquartered in New Jersey.

Provident will acquire all of the outstanding shares of SB One in exchange for common shares of Provident. The exchange ratio will be fixed at 1.357 Provident shares for each share of SB One, resulting in an aggregate transaction value of approximately $208.9 million, based on Provident's closing stock price on March 11, 2020. The transaction consideration is presently valued at $22.09 per share for SB One shareholders.

Christopher Martin, chairman and CEO of Provident said, "This business combination provides attractive financial attributes to shareholders of both Provident and SB One. At $12 billion in assets, the combined company comfortably surpasses the $10 billion asset threshold and provides Provident a clear management succession plan with the addition of a very skilled leader and banker in Tony Labozzetta, who will serve as president and chief operating officer of the combined company."

Among the key facets of the deal includes providing Provident with entry into attractive new markets in Bergen County, NJ as well as in Astoria, Queens (NY). Provident states it intends to optimize the branch locations as part of the business combination.

The merger agreement has been unanimously approved by the boards of directors of both companies. The merger is expected to close in the third quarter of 2020.

Piper Sandler & Co. served as financial advisor and Luse Gorman, PC provided legal counsel to Provident. Keefe, Bruyette & Woods, A Stifel Company, served as financial advisor and Hogan Lovells US LLP served as legal counsel to SB One.

Instant Insights /

Provident Financial to Merge with SB One Bancorp in $208.9M Deal

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