Investment Banking - Columbia Financial, Inc.
Transactions | Banking
Client: Columbia Financial, Inc.
Transaction Type: Mergers & Acquisitions
Role: Buy-Side Advisor
Columbia Financial, Inc. to Acquire Freehold Bank
- Columbia Financial, Inc. (“CLBK”) is a corporation organized as a mid-tier stock holding company for Columbia Bank. CLBK, which operates 61 branches, 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 March 31, 2021, CLBK had total assets of $9.0 billion, $6.2 billion in loans, and $7.0 billion in deposits.
- Freehold MHC, Freehold Bancorp, and Freehold Bank (collectively, “Freehold”) is a state-chartered savings bank that was established on September 12, 1853 and is headquartered in Freehold, New Jersey. Freehold Bank serves its customers and communities through its main office and one branch office in Freehold. As of March 31, 2021, Freehold Bank had total assets of $229.8 million, $155.9 million in loans, and $197.2 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 Freehold 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 2022 net income, but slightly dilutive to 2022 earnings per share by approximately 2% 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 fourth quarter of 2021.
- Boenning & Scattergood is serving as financial advisor to Columbia Financial, Inc.