Bridgehampton National Bank says its $5.8-million purchase of a smaller rival, Hamptons State Bank, will be finalized Friday.
Bridgehampton has received all necessary approvals to complete the merger with Hamptons, a one-branch bank in Southampton.
“It's an opportunity for a Long Island bank to buy another Long Island bank, as opposed to what we’ve seen recently which is out-of-state institutions buying our local institutions," Kevin M. O'Connor, above, chief executive of Bridge Bancorp, the bank holding company, said.
That retains local decision-making for Hamptons State customers, he said.
The estimated purchase price of $5.8 million is based on the closing price of Bridge Bancorp's common stock on Wednesday.
At closing, the buyer will issue about 274,000 shares of its common stock to shareholders of Hamptons State Bank based on a 0.3434 exchange rate.
After the closing of the transaction, Bridgehampton National Bank will serve customers through a network of 20 branches and have total assets of about $1.2 billion and deposits of more than $1 billion, the bank said.
Newsday reported in February that analysts viewed 2011 as a year of consolidation in the banking industry, as smaller and weaker banks struggle in a more stringent regulatory atmosphere.