ISELIN, N.J. and BETHLEHEM, PA. (GLOBE NEWSWIRE) – Provident Financial Services, Inc. (NYSE:PFS) and Team Capital Bank (PRIVATE: PA.) today announced the signing of a definitive agreement under which Team Capital will merge with and into The Provident Bank. Consideration will be paid to Team Capital stockholders in a combination of stock and cash valued at $122 million, based on Provident’s closing price of $18.61 on December 19, 2013.
Upon completion of the transaction, The Provident Bank will assume a five branch Pennsylvania network in the attractive business lending markets of Bucks County and the Lehigh Valley. Further, the merger adds seven branches to Provident’s New Jersey franchise and expands Provident’s network into the growing banking markets of Hunterdon and Warren counties. With approximately $8.3 billion in assets post-closing, Provident will be positioned to deliver a wide range of comprehensive retail and commercial banking services through a combined network of 90 branches in 13 counties throughout northern and central New Jersey and three counties in eastern Pennsylvania.
Under the terms of the agreement, 75% of Team Capital’s common shares will be converted into Provident common stock and the remaining 25% will be exchanged for cash. Team Capital’s stockholders will have the option to elect to receive either 0.8575 shares of Provident common stock or $16.25 in cash for each Team Capital common share, subject to proration to ensure that in the aggregate 75% of Team Capital’s shares will be converted into Provident common stock.
The definitive agreement has been approved by the boards of directors of Provident, The Provident Bank and Team Capital. The completion of the transaction is subject to Team Capital’s stockholder approval and regulatory approvals for both companies.