State Bank acquisition by Valley National closes

State Bank of Long Island's merger with a New Jersey bank is complete, as of Sunday, and its stock will be delisted from the Nasdaq exchange when the market opens Tuesday, the company's parent, State Bancorp Inc., said.

To execute the merger, the buyer, Valley National Bancorp, is issuing about 17 million shares of its common stock, which will be provided to State Bancorp shareholders on a one-for-one basis. Valley's shares trade on the New York Stock Exchange under the symbol VLY.

On its most recent day of trading on Friday, Valley shares closed at $12.37, in the middle of its 52-week range of $9.57 to $14.22. At Friday's share price, the value of the deal is about $210 million.

Bank officials could not be reached for comment Monday on what immediate impact the merger will have on customers when the former State Bank branch doors open for business Tuesday at its 16 locations on Long Island and in Queens, and a lending office in Manhattan.

When the merger was first announced in April, State said it would keep its existing branches and employees, and have broader offerings of products for consumers via Valley National.

In recent filings with the Securities and Exchange Commission, Valley said it had about 2,700 employees, and State reported about 290.

Valley National, of Wayne, N.J., said in a Friday news release that "full systems integration is expected to be completed during the first quarter of 2012 and is anticipated to be a relatively seamless transition for all customers."

With the purchase, Valley will have nearly $16 billion in assets. Its principal subsidiary, Valley National Bank, has 211 branches in northern and central New Jersey, Manhattan and Long Island.

The combined bank will rank as the 37th largest U.S. publicly traded commercial bank, Valley said in April.

State Bancorp last month said Valley paid back the $36.8 million that State borrowed under the federal government's controversial Troubled Asset Relief Program - -- - the bank bailout -- using funds provided by Valley National.