Christopher Martin, chairman and CEO of Provident Financial Services Christopher Martin, chairman andCEO of Provident Financial Services

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

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The deal with SB One Bancorp, the parent of SB One Bank, wouldbroaden Provident's operations in both New Jersey and New YorkState. The combined organization will have approximately $12billion in assets and will rank as the third largest bankheadquartered in New Jersey.

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

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Christopher Martin, chairman and CEO of Provident said, "Thisbusiness combination provides attractive financial attributes toshareholders of both Provident and SB One. At $12 billion inassets, the combined company comfortably surpasses the $10 billionasset threshold and provides Provident a clear managementsuccession plan with the addition of a very skilled leader andbanker in Tony Labozzetta, who will serve as president and chiefoperating officer of the combined company."

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

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

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

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John Jordan

John Jordan is a veteran journalist with 36 years of print and digital media experience.