WAYNE, N.J., March 31 /PRNewswire-FirstCall/ -- Valley National Bancorp
(NYSE: VLY) completed its previously announced merger with Shrewsbury Bancorp
effective at the close of business today. Shrewsbury is the holding company
for Shrewsbury State Bank, a commercial bank with approximately $425 million
in assets and 12 branch offices located in 10 communities in Monmouth County.
Valley paid approximately $136 million in cash and stock for Shrewsbury.
Shrewsbury shareholders holding approximately 17 percent of Shrewsbury shares
elected to receive cash of approximately $22.5 million with the balance of the
purchase price paid through the issuance of 4.4 million shares of Valley
common stock. Valley intends to record goodwill and core deposit intangibles
of approximately $80 million. Valley anticipates that the transaction will be
accretive to earnings within one year of the closing.
"The merger with Shrewsbury was consistent with our company's continued
strategy of highly focused growth within approximately sixty miles of our
headquarters through new branches and acquisitions of other financial
institutions with a similar customer culture. Shrewsbury represented Valley's
best possible acquisition candidate in Monmouth County. This was an
opportunity for Valley to expand its franchise and provide its full complement
of services along with its high level of customer service to this market.
Shrewsbury offered Valley the opportunity to take advantage of the growing
market place in Monmouth County through their long history and existing
locations and customers," said Gerald H. Lipkin, Chairman, President & CEO.
Valley National Bancorp is a regional bank holding company with
approximately $11.2 billion in assets, headquartered in Wayne, New Jersey.
Its principal subsidiary, Valley National Bank, currently operates 146 offices
in 97 communities serving 12 counties throughout northern New Jersey and
Manhattan.
Cautionary Statement Concerning Forward-Looking Statements
The foregoing contains forward-looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995. Such statements are not
historical facts and include expressions about management's confidence and
strategies and management's expectations about new and existing programs and
products, acquisitions, relationships, opportunities, taxation, technology,
market conditions and economic expectations. These statements may be
identified by such forward-looking terminology as "expect," "anticipate,"
"look," "view," "opportunities," "allow," "continues," "reflects," "believe,"
"may," "will," "should" or similar statements or variations of such terms.
Such forward-looking statements involve certain risks and uncertainties.
Actual results may differ materially from such forward-looking statements.
Valley assumes no obligation for updating any such forward-looking statement
at any time. Factors that may cause actual results to differ materially from
those contemplated by such forward-looking statements include, but are not
limited to, changes in the estimate of cost saves or one time charges, success
in retaining Shrewsbury customers and employees, changes in tax status of
subsidiaries or a decline in the economy in New Jersey.
SOURCE Valley National Bancorp
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http://www.valleynationalbank.com
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CONTACT:
Dianne M. Grenz, Senior Vice President,
Director of Public & Shareholder Relations, +1-973-305-3380
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