Photo courtesy of Ion Bank.
Naugatuck-based Ion Bank plans to expand into Northern New Jersey by merging with Lincoln 1st Bank, a community bank with $284 million in assets.
Ion Bank’s parent company Ion Financial said in a joint statement yesterday with Lincoln Park Bancorp that the banks had entered into a definitive agreement that will see Lincoln 1st Bank merge into Ion Bank.
The merger agreement was unanimously approved by both banks’ board of directors, the statement said, and the deal is expected to close in the third quarter of 2022.
Ion Bank, which has about $1.7 billion in assets, said in the statement that the merger is in keeping with its “strategic goal of investing where it can best serve its customers, and these new communities are part of that strategy.”
“Ion Bank is committed to the success of the communities in which it operates,” the statement said. “That commitment will extend to the existing Lincoln 1st Bank offices and surrounding communities that Lincoln 1st Bank serves.”
Lincoln 1st has two Northern New Jersey branches in Lincoln Park and Montville.
“We’re excited to welcome Lincoln 1st Bank to the Ion Bank family,” Ion Bank president and CEO, David Rotatori, said in the statement. “Both banks share a commitment to exceptional customer service and are deeply committed to the communities they serve. We also share similar values of developing authentic relationships with consumers and business customers and being their trusted financial advisor.”
Lincoln Park Bancorp currently has about 1.7 million shares of common stock outstanding, with the parent company owning almost 94 percent of the shares. The remaining 735,611 shares are owned by minority shareholders, and under the terms of the merger agreement, these shareholders will receive $10.10 in cash in exchange for each share of Lincoln Park Bancorp common stock.
The transaction for minority shareholders is valued at approximately $7.5 million, according to the statement.
Philip B. Vaz, co-president and chief operating officer of Lincoln 1st Bank, is expected to join Ion Bank as its New Jersey regional president, and the other co-president, Chief Financial Officer Erik Terpstra, is expected to join as director of risk.
“We are excited to be joining forces with a community bank that shares the same values and culture as Lincoln 1st Bank,” Vaz said. “The combination with Ion Bank, recognized by Newsweek as the Best Small Bank in Connecticut, will give us the opportunity to provide additional products and services for our customers.”
“We look forward to our new partnership with Ion Bank and the opportunities for growth that we expect it will provide,” Terpstra said. “Most importantly, the culture at Ion Bank will enable our customers to continue to benefit from the same customer-centric approach as Lincoln 1st Bank.”
The transaction is subject to regulatory and other approvals, and Lincoln Park Bancorp shareholders must approve the deal as well. After the merger is completed, the combined entity is expected to have $2 billion in assets.
