BCB Bancorp (BCBP) and Pamrapo Bancorp (PBCI) have signed a definitive merger agreement. Under the terms of the agreement Pamrapo will merge with BCBP and PBCI shareholders will receive 1 share of BCBP for each share of PBCI.
It has reported that the board of directors of BCBP will be expanded by five seats for representation from PBCI. Daniel Massarelli will serve as Chairman of the combined entity and Mark Hogan will serve as Vice Chairman. Donald Mindiak will be the President and CEO of the combined entity, Thomas Coughlin will serve as COO and Kenneth Walter will serve as CFO.
Mark Hogan, Chairman of BCBP, said: “We believe the partnership will solidify the combined entity’s Hudson County franchise and presents the opportunity to generate earnings and attractive returns to both groups of shareholders. The combination will greatly assist us in developing a more responsive and efficient institution while holding true to our tenet of customer service. We plan to continue to emphasize Pamrapo’s personal service and community banking focus.”
Kenneth Walter, Interim President and Chief Executive Officer of PBCI, said: “We can continue with our philosophy of providing a high level of customer service and local decision making in our market area but will now have the added benefits of being part of a larger organization with much greater resources, lending limits and convenience for our customers.”
The combined entity is projected to have $1.2 billion in total assets and the resulting company will be a bank holding company with one banking subsidiary, a state-chartered commercial bank.
FinPro acted as financial advisor to BCBP and Endicott Financial Advisors acted as financial advisor to PBCI. Luse Gorman Pomerenk & Schick provided legal representation to BCBP, while Patton Boggs provided legal representation to PBCI. Both boards of directors have unanimously approved the merger. However, the merger is subject to approval of the shareholders of both BCBP and PBCI. The merger is expected to be completed by the end of 2009.
