Regional lender Provident to buy Lakeland Bancorp in $1.3 bln deal (updated)

Provident Financial Services

27/09/2022 13:13

(Adds deal details, background)
       Sept 27 (Reuters) - Provident Financial Services Inc
 PFS.N  plans to acquire Lakeland Bancorp  LBAI.O  in a deal
valued at nearly $1.3 billion to gain a stronger foothold with
nearly 4% of all bank deposits in New Jersey, the companies said
on Tuesday.
        The regional lenders are joining forces at a time when
even diversified Wall Street banks are buckling under pressure
from inflation, interest rate hikes and economic downturns,
forcing them to report reduced profits and cut costs.
  
        The deal, expected to close in the second quarter of
2023, will see Provident shareholders own 58% and Lakeland
investors own 42% of the combined company.
  
        The combined company, which will have more than $25
billion in assets and $20 billion in total deposits, will trade
under the Provident ticker symbol.
  
        Piper Sandler Companies is Provident's financial adviser
on the deal, while Keefe, Bruyette & Woods, A Stifel Company is
advising Lakeland.
  
 (Reporting by Mehnaz Yasmin in Bengaluru; Editing by Maju
Samuel)
 ((Mehnaz.Yasmin@thomsonreuters.com;))