Page 9 - RENJ Aug2021

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CITIZENS TO ACQUIRE INVESTORS BANCORP FOR $3.5 BILLION
Citizens Financial Group Inc. has agreed to acquire Investors Bancorp Inc., the Short Hills-based lender and a major player in recent years in New Jersey commercial real estate finance.
Based in Providence, Rhode Island, Citizens said the roughly $3.5 billion deal will enhance its banking franchise, add- ing an attractive customer base of both consumers and middle market and small businesses. It also expands Citizens’ physical presence in the Northeast with the addition of 154 branches in New Jersey and elsewhere in the greater New York City and Philadelphia metropolitan areas.
The acquisition comprises roughly $27 billion in total assets and $20 billion in deposits currently held by Investors.
“The acquisition of Investors, following on the heels of the acquisition of HSBC’s East Coast branches, further strength- ens our formidable franchise in the Northeast, together adding roughly one million customers and boosting our near and long-term growth potential,” said Bruce Van Saun, chairman and CEO of Citizens. “We are confident in our ability to successfully integrate these acquisi- tions, and to over time deliver the same attractive offerings to customers and strong financial performance in the New York City metro region and New Jersey as we do in other major metro areas we serve.”
Citizens, which is acquiring all outstand- ing shares of Investors for stock and cash, said the combined businesses will span retail and commercial banking markets with large, dense population centers, areas of high-income house- holds and centers of robust business activity. That includes a sizable commer- cial real estate portfolio in New Jersey that Investors has built in recent years, becoming one of the state’s more active, visible lenders for midsized properties and development projects.
“Joining Citizens, with its broad ca- pabilities, scale and commitment to excellence in
local-market expertise and personal touch will align well with Citizens’ approach and together we will drive long-term value for all our stakeholders.”
Key members of Investors’ management team are expected to join Citizens to ensure business and client continuity, according to a news release. To that end, Cummings and Michele N. Siekerka, both Investors board members, are ex- pected to join Citizens’ board of direc- tors upon closing of the transaction.
The agreement and merger plan has been unanimously approved by the boards of directors of each company
Investors Bancorp. is headquartered at 101 John F. Kennedy Parkway in Short Hills.
and the transaction is expected to close in first or second quarter of 2022, subject to approval by the sharehold- ers of Investors, receipt of required regulatory approvals and other cus- tomary closing conditions, the news release said. The deal also includes Investors’ pending acquisition of eight Berkshire Hills branches.
Morgan Stanley & Co. LLC acted as financial adviser to Citizens in connec- tion with the transaction and Sullivan & Cromwell LLP served as legal adviser. Keefe, Bruyette & Woods, A Stifel Com- pany, served as lead financial adviser to Investors, working with Piper Sandler & Co. and Lazard, while Luse Gorman PC served as legal adviser.
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Kevin Cummings
customer service opens exciting opportunities for our combined company,” Inves- tors Chairman and CEO Kevin Cummings said. “Citizens shares
Investors’ deep commitment to serving customers, supporting colleagues and giving back to local communities. Our