Under the terms of the agreement ACB will merge with and into BCBP’s subsidiary BCB Community Bank.
ACB stockholders will receive 0.35 shares of BCBP for each share of ACB. The exchange ratio may be adjusted under certain circumstances.
The Board of Directors of BCBP and its subsidiary BCB Community Bank will be expanded by two seats for representation from ACB. Members of the ACB management team are expected to join BCBP.
The merger will add approximately $120m in assets to BCBP’s $1.1bn asset base and will add two branch locations to BCBP’s branch network.
Management expects the merger to be accretive to BCBP’s 2012 earnings per share.
BCBP currently operates 10 retail branches in Hudson and Middlesex Counties in New Jersey.
ACB is headquartered in South Orange, New Jersey and operates a branch in Woodbridge, New Jersey.
BCBP chairman Mark Hogan said the combination will expand their franchise into two new markets.
"We expect to be able to increase lending and deposits in the markets presently served by Allegiance as a result of BCBP’s higher capital base and the broader products and services provided by BCBP. We will continue to emphasize Allegiance’s service-oriented community bank culture," Hogan said.
