Bridge Bancorp said it would issue $25 million in stock to help pay for its acquisition announced earlier this week of a smaller competitor.
The parent of Bridgehampton National Bank said Monday that it would pay $5.3 million to acquire privately-held First National Bank of New York, which has three branches on Long Island and a lending office in Manhattan.
“The purpose of the [stock] offering is in part to provide additional capital to Bridge Bancorp to support its acquisition of FNBNY Bancorp, Inc. and for general corporate purposes,” Bridge said Tuesday.
Bridge said the acquisition is expected to close in the first quarter of next year.
Shareholders of FNBNY will receive 244,110 Bridge shares, valued at $5.3 million, but subject to certain adjustments for problem FNBNY loans and some insurance claims.
The acquisition is expected to increase Bridge’s assets from $1.7 billion to $2 billion.
FNBNY is headquartered in Melville and has a branch there and others in Merrick and Massapequa.