Provident Financial Services, the parent company of Provident Bank, and Lakeland Bancorp, the parent company of Lakeland Bank, received regulatory approval from the Federal Reserve to complete their previously announced merger. With this approval, no further regulatory approvals are required to complete the merger.
Consistent with the approval of the Federal Deposit Insurance Corporation for the merger, the Federal Reserve approval is subject to a commitment by Provident to issue $200 million of Tier 2 qualifying subordinated debt prior to or concurrently with the completion of the merger. In addition, Provident has committed to submitting, within 60 days following the completion of the merger, a capital plan to the Federal Reserve Bank of New York to maintain satisfactory capital at the bank holding company, and for two years following completion of the merger to provide the Federal Reserve Bank of New York 30 days prior written notice of any capital distribution, with the capital distribution consistent with the capital plan.
The merger is expected to be completed in Q2/24, subject to the completion of the subordinated debt issuance and satisfaction of customary closing conditions.
