First Bank and OceanFirst Bank, the banking subsidiary of OceanFirst Financial, executed a definitive agreement whereby First Bank will acquire two New Jersey branch locations from OceanFirst Bank. The two branches are located in Flemington, NJ, and Monroe, NJ.

The terms of the agreement provide for First Bank to acquire the owned premises and equipment, all deposits associated with the branches, which totaled approximately $124 million as of June 30, as well as selected performing loans totaling approximately $14 million as of June 30. The assets will be acquired at book value except for the owned premises, which will be acquired at appraised value, and the deposits will be acquired for a 2% premium or approximately $2.5 million utilizing June 30 deposit balances. The current staff members of the branches will become employees of First Bank. The two branches will continue operating as OceanFirst Bank branches until the transaction is approved and completed. The transaction is subject to regulatory approval and is expected to be completed during Q4/21.

“This transaction enables First Bank to realize additional scale in our targeted service area and acquire long-term, low-cost core funding 35% below our current cost of funding along with providing an opportunity for long-term value creation,” Patrick L. Ryan, president and CEO of First Bank, said. “We believe that the integration experience we have gained in recent years, along with the excellent relationships we maintain with regulators, will enable a seamless transition with minimal disruption for all customers.”

Boenning & Scattergood acted as financial advisor to First Bank. Troutman Pepper provided legal counsel to First Bank and Luse Gorman provided legal counsel to OceanFirst Bank.