Investment Banking - Columbia Financial, Inc.
Transactions | Banking
Client: Columbia Financial, Inc.
Transaction Type: Mergers & Acquisitions
Role: Buy-Side Advisor
Columbia Financial, Inc. Announces its Intention to Acquire RSB Bancorp, MHC, RSB Bancorp, Inc., and Roselle Bank (Collectively, “Roselle”)
- Columbia Financial, Inc. (“CLBK”) is a corporation organized as mid-tier stock holding company for Columbia Bank. CLBK is a majority-owned subsidiary of Columbia Bank, MHC. Columbia Bank is a federally chartered savings bank headquartered in Fair Lawn, New Jersey. As of September 30, 2019 and prior to completing its acquisition of Stewardship Financial Corporation in October 2019 for $137 million, CLBK had total assets of $7.1 billion, $5.2 billion in loans, and operates 64 branches with $4.8 billion in deposits.
- Roselle is a state chartered savings bank that was established on May 25, 1889 and is headquartered in Roselle, New Jersey. Roselle serves its customers and communities through 4 full-service locations in Roselle, Cranford, Bernardsville and High Bridge. As of September 30, 2019, Roselle had total assets of $442 million, $171 million in loans, and $338 million in deposits.
- As part of the transaction, Columbia Financial, Inc. will issue additional shares of its common stock to Columbia Bank, MHC in an amount equal to the fair value of Roselle as determined by an independent appraiser. These shares are expected to be issued immediately prior to completion of the merger.
- On a pro forma basis, the transaction is expected to be accretive to Columbia’s 2021 net income, but dilutive to 2021 earnings per share by approximately 4% due to the shares issued to Columbia Bank, MHC. The transaction is projected to be accretive to fully converted tangible book value.
- The transaction is expected to close in the second quarter of 2020.
- Boenning is serving as financial advisor to Columbia Financial, Inc.