The agreement requires approval by Team Capital stockholders.
View full sizeTeam Capital President and CEO Robert Rupel says Team Capital customers and stockholders will benefit from the merger The Provident Bank. Provident Financial Services Inc. today announced an agreement to acquire Lehigh Valley-based Team Capital Bank.
Team Capital Bank, which has offices at Lehigh Valley Industrial Park VI in Bethlehem Township, Pa., and a dozen branches mostly in the Lehigh Valley and northwestern New Jersey, will merge with The Provident Bank.
Under the deal, Team Capital stockholders will be paid in a combination of stock and cash valued at $122 million, based on Provident's closing price of $18.61 on Thursday, according to a news release.
The Provident Bank will acquire the five branches in Pennsylvania and seven in New Jersey, which include branches in Phillipsburg, Clinton and Flemington.
With about $8.3 billion in assets, Provident's network will include 90 branches in 13 counties throughout northern and central New Jersey and three counties in eastern Pennsylvania.
"We're very pleased with the acquisition of Team Capital Bank, a commercially oriented bank with solid asset quality," Provident Chairman, President & CEO Christopher Martin said in a statement. "This merger will establish an important presence for Provident in eastern Pennsylvania, and it nicely complements and strategically adds to our franchise in contiguous markets. This presents a great opportunity to add scale to Team Capital's commercial lending operations and for the retail bank to increase its market share."
The completion of the transaction is subject to Team Capital Bank's stockholder approval and regulatory approvals for both companies. A Team Capital spokesman wasn't immediately available to comment on the deal.
Team Capital President and CEO Robert Rupel said in a prepared statement that Team Capital customers and stockholders will benefit from the merger.
"Provident brings additional retail and business banking products, proven lending capabilities and a depth of capital that will enable the combined company to better compete in our marketplace," Rupel said. "Our officers and employees look forward to joining the Provident team."
Under the terms of the agreement, 75 percent of Team Capital's common shares will be converted into Provident common stock and the remaining 25 percent 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, officials said.
The agreement has been approved by the boards of directors of Provident, The Provident Bank and Team Capital, according to a news release.
Team Capital Bank was founded in the Lehigh Valley in 2005 with co-chairmen Martin D. Cohen, a Lehigh Valley attorney, and Pat Toomey, the former congressman and current U.S. senator. Cohen remains on the board of directors.
The bank opened its first Lehigh Valley branch in 2006 at 2151 Emrick Blvd. in Bethlehem Township.
The Pennsylvania branches include two in Allentown, one in Bethlehem Township, one in Newtown and one in Doylestown. New Jersey branches include two branches in Flemington and one each in Phillipsburg, Clinton, Far Hills, Somerville and West Orange.