Red Bank-based OceanFirst Bank’s parent company, OceanFirst Financial Corp., announced a merger agreement with Partners Bancorp, parent company of The Bank of Delmarva and Virginia Partners Bank, in which Partners will merge into OceanFirst.
Upon completion of the merger, The Bank of Delmarva and Virginia Partners Bank will each successively merge into OceanFirst Bank. The transaction is valued at approximately $10.38 per Partners common share, or approximately $186 million.
Based on Sept. 30 results and the impact of purchase accounting, the combined company is expected to have approximately $13.5 billion in assets, $9.3 billion in loans and $11.2 billion in deposits.
The proposed acquisition of Partners would expand OceanFirst’s footprint into Delaware, Maryland, Virginia and the Washington D.C. metro area.
Christopher D. Maher, OceanFirst chairman and chief executive officer, commented on the announcement, “The banks that comprise Partners Bancorp are each strong organizations operating community commercial banking models and have demonstrated strong growth in their markets. Joining the OceanFirst family will allow these highly professional commercial bankers to continue to build new relationships while leveraging the technology and operating efficiency offered by our company.”
“This partnership creates a powerful and innovative financial services provider better able to serve its clients and communities of today and tomorrow,” said Lloyd B. Harrison, III, chief executive officer of Partners. “The team at OceanFirst has built and maintains a high-quality banking franchise, and there is no better team with which to unite to deliver community-style banking and to capitalize on the opportunities presented by an evolving industry.”
The merger is expected to close in the first half of 2022, subject to Partners receiving the requisite approval of its stockholders, receipt of all required regulatory approvals, and fulfillment of other customary closing conditions.
Raymond James & Associates, Inc. served as financial advisor to OceanFirst and Skadden, Arps, Slate, Meagher & Flom LLP served as OceanFirst’s legal counsel. Piper Sandler Companies served as financial advisor to Partners and Troutman Pepper Hamilton Sanders LLP served as Partners’ legal counsel.
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