Comprehensive M&A data with integrated detailed company information

OceanFirst to acquire Two River
Posted on Monday, 12 August 2019 13:20
OceanFirst Financial is further building its presence in New Jersey by taking Two River Bancorp private for USD 182.80 million in cash and shares. Founded in 2000, the parent holding company of Tinton Falls-headquartered Two River Community Bank has 14 branches and two loan production offices in Monmouth, Ocean, Union and Essex counties. As at 30th June 2019, Two River had USD 1.15 billion in assets, USD 953.10 million in loans, USD 972.60 million in deposits and USD 121.40 million in shareholders’ equity. The lender had 9.1 per cent tangible common equity to tangible assets, a return on average assets of 1.1 per cent and an efficiency ratio of 61.0 per cent, at the end of June. In terms of valuation multiples, the USD 20.79 apiece offer equates to a tangible book value per share of 174.0 per cent, 14.6x 2020 estimated earnings per share and a core deposit premium of 9.5 per cent. OceanFirst will pay USD 48.80 million in cash and issue 5.80 million new shares worth USD 134.00 million and expects to close the deal in the first quarter of 2010, following regulatory and shareholder approval. As well as announcing the acquisition of Two River, the financial organisation also revealed a definitive agreement for OTC Pink-listed Country Bank Holding. OceanFirst is building a premier regional franchise through the two takeovers, which will bolster the group’s existing geographical footprint. As well as clearing the way to making significant cost savings, the deals also add scale to the lender’s metropolitan New York lending initiative. Since 2015, OceanFirst has successfully integrated and met financial targets for five whole bank acquisitions, including Colonial American Bank in 2015, Cape Bancorp in 2016, Ocean Shore in 2016 and Sun Bancorp in 2017. Zephyr, the M&A database published by Bureau van Dijk, shows there have been 44 US banking sector acquisitions announced in 2019 to date, of which the Two River transaction is the tenth-largest of the year. © Zephus Ltd