Provident Financial Services and Lakeland Bancorp to merge in $1.3bn deal

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Publicly-listed New Jersey-based bank holding companies Provident Financial Services and Lakeland Bancorp have agreed to an all-stock merger deal worth around $1.3 billion.

While Provident Financial Services is the parent company of Provident Bank, Lakeland Bancorp is the holding company for Lakeland Bank.

The enlarged bank holding company will have over $25 billion in assets and total deposits of $20 billion of which Lakeland Bancorp’s contribution will be $10.4 billion in total assets, as of 30 June 2022.

It will operate as Provident Financial Services, Inc. while the combined bank will be Provident Bank. To be based in Iselin, New Jersey, the new Provident Financial Services will trade on the New York Stock Exchange (NYSE).

Anthony Labozzetta — Provident Financial Services President and CEO said: “We are excited to announce this transformational combination of two amazing organizations.

“The scale and profitability of the combined organization will enable us to invest in the future, better compete for market share, and better serve our customers and communities. We bring together a diverse group of employees who are committed to delivering exceptional service to our customers and the communities we serve.”

As per the terms of the deal, shareholders of Lakeland Bancorp will exchange each of their shares in the bank holding company for 0.8319 shares of Provident Financial Services.

After the closing of the deal, the original shareholders of Provident Financial Services will own 58% of the combined bank holding company, while Lakeland Bancorp’s shareholders will own the remaining 42% stake.

Thomas J. Shara — Lakeland Bancorp President and CEO said: “As two of New Jersey’s most respected banks that nearly mirror each other in our shared cultures and missions to support and deliver to our customers, communities and shareholders, we are thrilled that we’re combining our talented teams.

“The combination of our companies will allow us to achieve substantially more for our clients, associates, communities, and shareholders than we could alone.”

The merger, which is subject to customary regulatory approvals and approval by the shareholders of the two bank holding companies and other customary closing conditions, is likely to close in Q2 2023.

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