Kearny Financial, the parent company of Kearny Bank, has agreed to acquire rival New Jersey-based bank holding company MSB Financial, the owner of Millington Bank, in a deal worth over $94m.
Millington Bank, which is headquartered in Millington, is a state chartered savings bank that has four full-service branch offices located across northern New Jersey. As of 30 September 2019, its parent company MSB Financial held nearly $591m of assets, $476m of deposits, and $513m of loans.
Headquartered in Fairfield, New Jersey, Kearny Bank is a state chartered savings bank. The bank currently has 49 full service branch offices across northern and central New Jersey and Brooklyn and Staten Island in New York.
As of 30 September 2019, Kearny Financial had nearly $6.6bn in total assets.
According to the bank holding company, the transaction further grows its branch footprint westward into Somerset and Morris Counties in northern New Jersey.
The combined company is expected to have nearly $7.25bn of assets, $4.67bn of deposits, and $5.1bn of loans, while operating 52 full service branch locations, as of 30 September 2019.
Kearny Financial CEO comments on Millington Bank aquisition
Kearny Financial president and CEO Craig Montanaro said: “We are two strong community banks with well over two combined centuries of rich history serving our clients and the surrounding communities.
“We welcome the Millington employees and clients and feel that our expanded product suite and focus on digital technologies will offer an opportunity to further grow the combined franchise which makes this a winning combination for all concerned.”
As per the merger terms, Millington Bank will exchange each of its shares for 1.3 shares of Kearny Financial or $18 in cash, or a combination of stock and cash.
Upon completion of the merger, Kearny Financial’s shareholders will hold nearly 94% stake in the combined banking company, while Millington Bank’s shareholders will own the remaining stake of around 6%.
Millington Bank president and CEO Michael Shriner said: “This merger will expand the banking opportunities and services available to our employees, customers and the communities that we serve.”
The merger, which is subject to Millington Bank’s shareholders’ approval, regulatory approvals, and other customary closing conditions, is expected to be completed during the second quarter of 2020.
