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Naugatuck’s Ion Bank has agreed to merge with New Jersey-based mutual bank NVE Bank, making the second New Jersey bank Ion as acquired in two years.

NVE is based in Engelwood, New Jersey and has 10 branches in Bergen County, across the Hudson River from Westchester County, New York. The bank has $665.85 million in assets and $440.34 million in deposits.

Ion Bank, which is also a mutual bank, will be the surviving institution although NVE will continue to operate under its existing brand as a division of Ion.

“This merger is the latest step in our plan for strategic growth and expands our footprint to reach a larger audience in New Jersey. We feel our full offering of products and services for both businesses and consumers will enhance an already great brand,” Ion President and CEO David Rotatori said in a statement.

Ion bought Lincoln 1st Bank in 2021, a two-branch, $271.42 million-asset bank in exurban Morris County, New Jersey.

The NVE merger will leave Ion with $2.7 billion in assets and 12 branches in New Jersey, in addition to its 20 Connecticut locations.As part of the deal, Ion will establish a new charitable foundation seeded with an initial contribution of $5 million and dedicated to serving NVE’s footprint.

Upon completing the transaction, each of the NVE Bank directors will be offered a position on the Ion Financial MHC and Ion Bank boards of directors. In addition, Robert Rey, president and CEO of NVE Bank, will be offered the post of president and as CEO of the division comprising the former NVE Bank. Rotatori will remain president and CEO of Ion Bank and its mutual holding company.

“NVE Bank has been serving its customers and communities in Bergen County, New Jersey, for the past 137 years. The combination with Ion Bank, another strong mutual financial institution with over 150 years of successful growth in Connecticut and New Jersey, was a great opportunity for us to continue serving our customers with a larger platform, offering more branch locations and a greater suite of products and services,” Rey said in a statement provided by Ion Bank.

Luse Gorman PC serves as legal counsel to NVE Bank’s mutual holding company and NVE Bank. Hogan Lovells US LLP serves as legal counsel to Ion Bank and its mutual holding company. The Kafafian Group serves as financial advisor to NVE Bancorp.