Business
Northfield Bancorp, Inc. to Acquire VSB Bancorp, Inc. Expanding Staten Island Franchise
WOODBRIDGE, N.J. and STATEN ISLAND, N.Y., Dec. 23, 2019 (GLOBE NEWSWIRE) -- Northfield Bancorp, Inc. (Nasdaq: NFBK) (“Northfield”), parent company of
About this update from Northfield Bancorp, Inc.
[{"type":"text","content":"WOODBRIDGE, N.J. and STATEN ISLAND, N.Y., Dec. 23, 2019 (GLOBE NEWSWIRE) -- Northfield Bancorp, Inc. (Nasdaq: NFBK) (“Northfield”), parent company of Northfield Bank, and VSB Bancorp, Inc. (OTCQX: VSBN) (“VSB”), parent company of Victory State Bank (“Victory”), announced the signing of a definitive agreement pursuant to which VSB will merge with and into Northfield. \n The transaction reflects an in-market acquisition of an institution that shares similar core values and commitment to the Staten Island community, including a focus on serving commercial and retail borrowers and depositors, through its six locations on the island. Upon completion of the transaction, it is estimated that Northfield will have combined assets of $5.2 billion, loans of $3.5 billion, and deposits of $3.7 billion. Key Transaction Highlights: Strengthens competitive position in the Staten Island marketplace;Lowers funding costs with approximately $325 million of deposits, including $145 million of non-interest bearing demand accounts,Adds total loans of approximately $157 million, with an average yield of 5.77%;Creates economies of scale with significant identified cost-savings, and low execution risk;Provides expanded offerings, including a suite of commercial cash management services, business lending, home equity loans and lines, and lending capacity to Victory customers; andDeploys excess capital, with a modest level of tangible book value dilution, meaningful earnings accretion and acceptable period of tangible book value earn-back. Key Financial Highlights: 8.5% accretive to Northfield’s 2021 earnings per share;Less than 2.5% dilutive to tangible book value per share at closing; andEarn back of tangible book value dilution projected to be 3.75 years using the cross-over method. Northfield’s President & CEO, Steven M. Klein commented, “This merger will strengthen our over 130 year commitment to the people and businesses of Staten Island and provide greater lending capacity to Victory’s customers, improve efficiency in our combined organization, expand our market share of core deposits, and further leverage our strong capital base to support earnings growth.” Ralph M. Branca, Victory’s President and CEO, commented, “We have an added benefit of merging into a local institution with a major presence in the Staten Island marketplace. Our customers will ...