Provident Financial Services, Inc. PFS has completed its previously announced merger with Lakeland Bancorp, Inc. The acquisition combines two of New Jersey’s complementary banking platforms to form a super-community bank.
The system conversions are scheduled for early September 2024. Until then, the companies’ retail banking networks will operate separately under their respective brands.
Under the terms of the deal at the time of announcement, Lakeland Bancorp’s shareholders have the right to receive 0.8319 shares of Provident Financial for each share owned. Post closing, PFS and Lakeland Bancorp shareholders own 58% and 42% of the combined company, respectively.
On a pro-forma basis, the combined company will have $24.5 billion of assets, $18.8 billion of loans, $18.6 billion of deposits and total stockholders’ equity of $2.3 billion. The combined company will operate under the “Provident Financial Services, Inc.” name and will have 140 branches across New Jersey, and parts of New York and Pennsylvania.
The combined franchise will benefit from incremental revenue growth opportunities. It will include Provident Financial’s fee-based insurance and wealth management businesses, as well as Lakeland Bancorp’s growth in asset-based lending, equipment lease financing and mortgage warehouse lending.
Per PFS management, “We are extremely pleased and excited to announce the completion of our merger with Lakeland. The merger creates a company with significant scale and capabilities with a strong capital base and low credit risk profile. In Lakeland we found a like-minded partner that shares our vision, values, and commitment to our employees, customers, shareholders, and communities.”
Thomas J. Shara, executive vice chairman and Lakeland’s former president and CEO, remarked, “Our merger with Provident Bank presents new opportunities for expansion, innovation and excellence. Our long-standing commitment to serving our customers and communities will remain unwavering as we build upon our combined strengths and focus on the future together as one united team.”
PFS shares have gained 3.4% in the past six months compared with the industry’s 2.2% rise.
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Currently, Provident Financial has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Last month, UMB Financial Corp. UMBF signed a definitive agreement to acquire Heartland Financial, USA Inc. HTLF in an all-stock transaction valued at around $2 billion.
The deal is expected to further diversify UMBF’s business, adding scale to its consumer and small business capabilities, and expanding its footprint in the Midwest and Southwest markets. HTLF had $19.4 billion in assets, $16.2 billion in total deposits and $12.1 billion in total loans as of Mar 31, 2024.
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