Provident Financial Services, Inc. (NYSE:PFS) and Lakeland Bancorp, Inc. (NASDAQ:LBAI) have received regulatory approval from the Board of Governors of the Federal Reserve System for their merger. This approval comes after the Federal Deposit Insurance Corporation's approval, with the condition that Provident will issue $200 million of tier 2 qualifying subordinated debt before or concurrently with the completion of the merger.
Following the completion of the merger, Provident has committed to submitting a capital plan to the Federal Reserve Bank of New York within 60 days, aimed at maintaining satisfactory capital at the bank holding company. Additionally, for two years after the merger, Provident will provide the Federal Reserve Bank of New York with 30 days' prior written notice of any capital distribution, consistent with the capital plan.
The merger between Provident and Lakeland is expected to be finalized in the second calendar quarter, subject to the completion of the subordinated debt issuance and satisfaction of customary closing conditions.
As of December 31, 2023, Lakeland Bancorp, Inc. had $11.14 billion in total assets. The bank offers a wide range of business and retail banking products and services, including commercial loans, lines of credit, real estate loans, healthcare service loans, asset-based lending, equipment financing, small business loans, cash management services, online and mobile banking, home equity loans, mortgage options, and wealth management solutions.
This merger marks a significant development in the financial services sector and is indicative of the ongoing consolidation and strategic partnerships within the industry. Following these announcements, the company's shares moved 4.2%, and are now trading at a price of $14.13. Check out the company's full 8-K submission here.
