Greater Hudson Bank will be bought by New Jersey-based ConnectOne Bancorp Inc. in a $76.3 million stock deal.
ConnectOne announced the agreement July 12, which will have Greater Hudson merge into ConnectOne.
The deal gives a boost to the New Jersey bank’s entrance into the New York market by merging with an established Hudson Valley operation. From headquarters in Englewood Cliffs, ConnectOne’s network includes 21 banking offices across New Jersey and New York. Those locations would be joined by Greater Hudson’s six in Westchester, Orange and Rockland counties upon the deal’s final approval.
Greater Hudson holds $401.7 million in deposits and $340.7 million in loans. The combined banks would have total assets of $5.7 billion, deposits of $4.2 billion and loans of $4.5 billion, as of March 31.
Frank Sorrentino, ConnectOne chairman and CEO, said merging with Greater Hudson allows the company to establish itself in the Hudson Valley region, adds talented bankers, extends ConnectOne’s commercial and industrial lending capabilities and establishes a Small Business Administration line of business.
“We are excited to bring the ConnectOne operating model and the significant technological capabilities at our disposal to Greater Hudson’s franchise and anticipate this strategic initiative will provide considerable opportunities for both of our institutions,” he said in the merger announcement.
Under the agreement, each outstanding share of Greater Hudson’s common stock will be exchanged for 0.245 shares of ConnectOne common stock. The transaction is valued at $76.3 million, about $6.16 per Greater Hudson share, based upon the closing price of $25.15 for ConnectOne Bancorp stock as of July 11.
The agreement has been unanimously approved by the boards of both companies. ConnectOne expects the deal to close early in the first quarter of 2019, subject to approvals by Greater Hudson’s shareholders and regulators.
Greater Hudson Bank was founded in 2002 and has locations in Bardonia, Blauvelt, Middletown, Monroe, Tarrytown, Warwick and White Plains.