US bank holding companies Bridge Bancorp and Dime Community Bancshares have agreed to combine in an all-stock merger worth around $489m, in a move to create a premier community-based business bank.
Both the bank holding companies are based in New York State.
Bridge Bancorp is the parent company of BNB Bank, which provides commercial banking services in the Long Island and the greater New York metropolitan area through 38 branch locations.
Established in 1910, BNB Bank has assets under management of around $5.1bn.
On the other hand, Dime Community Bancshares is the parent company of Dime Community Bank, which was established in 1864. The New York State-chartered community commercial bank has 28 banking offices located across the counties of Brooklyn, Queens, the Bronx, Nassau, and Suffolk.
The merger is said to bring together two complementary banking platforms with combined assets under management of more than $11bn, over $8bn in total deposits, and 66 branches, which are spread from Montauk to Manhattan.
Bridge Bancorp president and CEO Kevin O’Connor said: “Dime has earned its strong reputation in the greater New York metropolitan market, and I’m thrilled to partner with them. Our enhanced branch footprint and increased capital base will allow us to better serve the needs of our customers.
“In addition, both companies have strong balance sheets and demonstrated histories of low loan losses through prior cycles, which give me confidence that we will be well-positioned to succeed in any environment.”
Bridge Bancorp is said to have a deep history in commercial and industrial (C&I), commercial real estate, and small business lending, while Dime Community Bancshares has been engaged in low-loan-to-value New York multifamily lending.
The combination of the two bank holding companies is expected to strengthen their complementary commercial and retail banking business lines.
As per the terms of the deal, the combined bank holding company will operate as Dime Community Bancshares, while the combined bank will function as Dime Community Bank with headquarters in Hauppauge.
Upon the closing of the deal, Dime Community Bancshares’ shareholders will be issued 0.6480 shares of Bridge Bancorp for each of their shares. Shareholders of Dime Community Bancshares will hold nearly 52% stake in the combined company, while Bridge Bancorp’s shareholders will own approximately 48% stake.
Dime Community Bancshares CEO comments on the merger with Bridge Bancorp
Dime Community Bancshares CEO Kenneth J. Mahon said: “This merger is the next logical step in Dime’s journey and significantly accelerates our business model transformation. Bridge and Dime are two of the most highly acclaimed and respected franchises in the New York market.
“Both of us weathered the financial crisis of 2008 with among the lowest loss rates in the entire country. We believe the capital strength of the combined company, Bridge’s high-quality deposit base, and Dime’s historically strong New York City multifamily loan portfolio, will result in the creation of a solid balance sheet.”
The merger is likely to close in the first quarter of next year should it satisfy customary closing conditions such as receipt of customary regulatory approvals and approvals of shareholders of both the companies.
