First Bank Completes Acquisition of Two Former OceanFirst Branches Strengthening Its Presence in Central New Jersey
The acquisition includes approximately $ 101 million in deposits and $ 11 million in loans
HAMILTON, NJ and RED BANK, NJ, December 6, 2021 (GLOBE NEWSWIRE) – First Bank (Nasdaq Global Market: FRBA) and OceanFirst Bank, NA (âOceanFirst Bankâ), the banking subsidiary of OceanFirst Financial Corp. (“OceanFirst”) (NASDAQ: OCFC), announced the completion of its previously disclosed agreement, whereby First Bank acquired two New Jersey branches of OceanFirst Bank. As part of the acquisition, which closed at the close of business on December 3, 2021, First Bank also acquired approximately $ 101 million of associated deposits and $ 11 million of selected performing loans.
Located in Flemington and Monroe, the two branches enhance First Bank’s existing footprint in central New Jersey and further strengthen its presence along the New York-Philadelphia corridor.
âWe are very pleased to welcome our new customers and employees to First Bank as we continue to expand our presence in central New Jersey,â said Patrick L. Ryan, President and CEO of First Bank. âWith increased scale and low cost, relationship-based core funding, we see excellent opportunities for long-term value creation through this latest transaction. I would like to thank our entire First Bank team, including our new colleagues at Flemington and Monroe, for ensuring a smooth transition for all of our newly acquired clients. “
The $ 23 million reduction in deposit balances between the initial announcement date and the closing date can be categorized as: approximately $ 15 million in deposit balances from accounts intentionally removed from the acquisition list, 6 million dollars in account balances that fluctuated downward during the period; and $ 2 million million in accounts that were closed. Accounts have been intentionally deleted to minimize losses after closing.
The branch conversion began on Friday, December 3, 2021 and continued throughout the weekend, with both sites reopening on Monday, December 6, 2021 as branches of First Bank.
About First Bank
First Bank is a New Jersey State chartered bank with 18 full-service branches in Cinnaminson, Cranbury, Delanco, Denville, Ewing, Flemington (2), Hamilton, Lawrence, Monroe, Pennington, Randolph, Somerset and Williamstown, New Jersey; and Doylestown, Trevose, Warminster and West Chester, Pennsylvania. With $ 2.4 billion in assets as of September 30, 2021, First Bank offers a full range of personal and business deposit and lending products across the New York to Philadelphia corridor. The common shares of First Bank are listed on the NASDAQ Global Market under the symbol “FRBA”.
OceanFirst Financial’s subsidiary, OceanFirst Bank NA, founded in 1902, is an $ 11.8 billion regional bank that provides financial services throughout New Jersey and in major metropolitan markets in Philadelphia, New York, Baltimore, Washington DC and Boston. OceanFirst Bank offers commercial and residential finance, cash management, trust and asset management and deposit services. It is one of the largest and oldest community financial institutions headquartered in New Jersey. To learn more about OceanFirst, visit www.oceanfirst.com.
This press release contains certain forward-looking statements, express or implied, within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include information regarding the future financial performance, business strategy and growth of First Bank and OceanFirst Financial, projected plans and objectives, and related transactions, integration of acquired businesses, the ability to recognize anticipated operational efficiencies and other projections based on macroeconomic and industry trends, which are inherently unreliable due to the multiple factors that have affected impact on economic trends, and such variations may be Material. These forward-looking statements are based on various facts and are derived from material assumptions, current expectations, estimates and projections regarding First Bank and OceanFirst Financial, which may change over time and some of which may be beyond the control of First Bank. or OceanFirst Financial. Statements preceded, followed or which otherwise include the words “believes”, “expects”, “anticipates”, “intends”, “projects”, “estimates”, “plans” and similar expressions or Future or conditional verbs such as “” will “,” should “,” would “,” could “and” could “are generally forward-looking in nature and not historical facts, although all forward-looking statements do not include the foregoing . In addition, certain factors that could affect future results and cause actual results to differ materially from those expressed in forward-looking statements include, but are not limited to: the ability to successfully implement a growth strategy, including identifying acquisition targets and making appropriate acquisitions; continue to support internal growth rates; provide competitive products and services that attract customers and target markets; difficult market conditions and unfavorable economic trends in the United States in general, and in particular in the market areas in which First Bank or OceanFirst Financial operate and in which their lending is concentrated, including the effects of declining values the real estate market; the impact of disease pandemics, including COVID-19, on operations, customers and employees; an increase in the unemployment rate and slowdowns in economic growth; levels of non-performing assets and costs associated with resolving any problematic loans, including litigation and other costs; changes in market interest rates can increase financing costs and reduce returns on productive assets, thereby reducing the margin; the impact of changes in interest rates, the quality of credit and the strength of the underlying collateral and the effect of these changes on the market value of investment securities portfolios; comprehensive federal and state regulation, supervision and review governing nearly all aspects of First Bank and OceanFirst Financial operations, including regulatory changes affecting financial institutions and the expenses associated with complying with these regulations; uncertainties in tax estimates and assessments, including due to changes in federal and state tax laws; the ability to comply with applicable capital and liquidity requirements, including the ability to generate liquidity internally or raise capital on favorable terms, including continued access to debt and equity markets ; possible changes in trade, monetary and fiscal policies, laws and regulations and other activities of governments, agencies and similar organizations. For a discussion of these and other risks that may cause actual results to differ from expectations, please see âForward-Looking Statementsâ and âRisk Factorsâ in Annual Reports on Form 10-K filed by First Bank. and OceanFirst Financial Corp. and any updates to those risk factors set out in proxy statements, subsequent quarterly reports on Form 10-Q or current reports on Form 8-K. If one or more events related to these or other risks or uncertainties materialize, or if the underlying assumptions turn out to be inaccurate, actual results may differ materially from those anticipated. Therefore, you should not place undue reliance on these forward-looking statements. Any forward-looking statement speaks only as of the date on which it is made, and First Bank and OceanFirst Financial undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information. , future developments or otherwise. All forward-looking statements, express or implied, included in this communication are expressly qualified in their entirety by this cautionary statement. This cautionary statement should also be read in connection with any subsequent written or oral forward-looking statements that First Bank or OceanFirst Financial, or persons acting on behalf of First Bank or OceanFirst Financial, may make.
FIRST BANK CONTACT:
Patrick L. Ryan, President and Chief Executive Officer
(609) 643-0168, [email protected]
OCEANFIRST BANK CONTACT:
Michael J. Fitzpatrick, Chief Financial Officer
(732) 240-4500, ext. 7506, [email protected]