Jericho-based State Bank of Long Island, with eight branches in Nassau and five in Suffolk, has been bought by a New Jersey bank in a $222-million deal.
The buyer of State Bancorp Inc. is Valley National Bancorp, of Wayne, N.J.
"As is the case with Valley's other regional lending divisions throughout New Jersey and the boroughs of New York, the bank's regional lending and decision making will be made by local lenders based in Long Island," Valley National said in a Thursday news release.
The boards of both banks approved the merger, which will give common stock shareholders of State Bancorp a one-for-one exchange for Valley shares.
"The transaction is valued at an estimated $222 million, based on Valley's average ten day closing stock price between April 14, 2011 through April 28, 2011, adjusted for the stock dividend payable on May 20, 2011," Valley said.
State Bank of Long Island has $1.6 billion in assets, $1.1 billion in loans, and $1.3 billion in deposits, Valley said. Its 17-branch network "will provide an entree into Long Island for Valley, creating a strong metropolitan regional commercial bank" that will rank as the 37th-largest U.S. publicly traded commercial bank, Valley said.
The combined bank will have about $16 billion in assets, $10.5 billion in loans, $11 billion in deposits, 215 branches covering 16 counties from northern and central New Jersey to central Long Island, including Manhattan, Brooklyn and Queens, Valley said.
The deal is expected to close in the fourth quarter of 2011.
State Bank's Jericho headquarters will become Valley's Long Island regional office.
State Bank’s Long Island branches are in Jericho (two locations), Oyster Bay, New Hyde Park, Garden City South, Port Washington, Rockville Centre, Westbury, Farmingdale, Hauppauge, Huntington Station, Holbrook and East Setauket. Its Queens branches are in Long Island City, Maspeth and at the Bulova corporate center in Jackson Heights.
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