Hanover Bancorp to acquire NY City-based commercial bank Savoy Bank
Hanover Bancorp, the parent company of Hanover Community Bank, has agreed to acquire New York City-based commercial bank Savoy Bank in a stock-cum-cash deal worth around $63 million.
As per the terms of the deal, Savoy Bank will merge into Hanover Community Bank, thereby establishing a $1.6 billion asset bank that has a franchise footprint spreading from New York City to western Long Island.
The combined entity will have $1.1 billion in total deposits and eight branches, of which six are in the New York City market. An additional branch will be opened in New Jersey prior to the closing of the deal.
The merger between Hanover Community Bank and Savoy Bank is said to combine two complementary banking platforms for creating one of the premier sub $5 billion asset sized community banks catering to the greater New York City metro market. The combined banking company is expected to be positioned uniquely to capitalize on market opportunities because of recent and ongoing consolidation and will expand the number of channels and customers it serves via increased scale, expanded product offerings, and by taking up digital initiatives.
Michael Puorro – Hanover Bancorp Chairman and CEO said: “At Hanover, we have been focused on a high growth and high profitability strategy that has created significant shareholder value since the company was recapitalized in 2012. With Savoy we found a true partner who shares in this value creation focus and as a combined company we will better be able to compete in this fast-evolving marketplace and position the combined company for the next steps in our corporate evolution.
“We believe that becoming a public reporting company will improve our visibility to the investment community and enhance our shareholder liquidity options going forward.”
Hanover Bancorp to acquire NY City-based commercial bank Savoy Bank
The enlarged commercial bank will be headquartered in Mineola, New York and will retain Savoy Bank’s existing branch office in Rockefeller Center, New York City.
Savoy Bank’s President and CEO Mac Wilcox will join Hanover Community Bank as Senior Executive Vice President, Head of Commercial Lending and Chief Revenue Officer.
Mac Wilcox said: “Through top-tier profitability and earnings predictability, we will be able to reinvest in the business to drive multiple growth engines, enhance our ability to compete in the fast evolving banking landscape and sustain consistent returns on capital for shareholders. We believe the combined company will also create new opportunities for our employees and enable us to attract and retain top talent.”
The merger, which will be subject to receipt of the necessary regulatory approvals and approval by the Savoy Bank’s shareholders, is likely to close in the first half of 2021.