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20 OCTOBER 2022
PROVIDENT, LAKELAND BANK TO MERGE IN $1.3 BILLION DEAL
diverse group of employees who are committed to delivering exceptional service to our customers and the communities we serve.
It will also provide opportunities for additional growth and relationship expansion for both Provident’s two ancillary fee-based business lines in insurance and wealth management and Lakeland’s growing asset-based lending and equipment lease financing unit.
Meantime, the combined company will have roughly 4 percent of all bank deposits in New Jersey, which represents the second-largest share of New Jersey bank deposits for institutions with less than $100 billion in assets, according to a news release. Its enhanced branch footprint in northern and central New Jersey
and strong capital base will allow the merged platform to better serve small to midsized businesses, while bolstering its role in commercial lending.
The new platform will operate as Provident Bank under the Provident Financial Services Inc. name, with the administrative headquarters remaining in Iselin. The merged board will have 16 directors, nine from Provident and seven from Lakeland, while Provident Executive Chairman Christopher Martin will continue to serve in that role and Labozzetta will remain CEO and president.
“As two of New Jersey’s most- respected banks that nearly mirror each other in our shared cultures and missions to support and deliver to
our customers,
communities and
shareholders,
we are thrilled
that we’re
combining our
talented teams,”
said Thomas
J. Shara, CEO
and president
of Lakeland Bancorp Inc. “The combination of our companies will allow us to achieve substantially
more for our clients, associates, communities and shareholders than we could alone. I have tremendous respect for Tony Labozzetta, Chris Martin, Provident’s management team and associates. We will continue to build upon and leverage our combined strengths as we focus on the future together.”
Additionally, Shara will serve as executive vice chairman of the combined company board of directors, while Provident’s Thomas Lyons
will remain as senior executive vice president and chief financial officer, the news release said. The remainder of the executive team will draw from both banks.
Provident Bank and Lakeland Bank are joining forces under a $1.3 billion merger announced in late September, bringing together two key lenders
in the state’s commercial real estate sector.
The banks’ parent companies said
the all-stock merger, which is slated to close next spring, combines two complementary platforms that will have more than $25 billion in assets and $20 billion in total deposits. It also will create what they described as a super-community bank in New Jersey,
one that benefits from enhanced scale and improved opportunities for growth and profitability.
“We are excited to announce this transformational combination of
two amazing organizations,” said Anthony Labozzetta, CEO and president of Iselin-based Provident Financial Services Inc. “The scale
and profitability of the combined organization will enable us to invest in the future, better compete for market share, and better serve our customers and communities. We bring together a
Anthony Labozzetta
“It is particularly gratifying to embark on this journey with our colleagues on the Lakeland team and Tom Shara, whom we have held in high regard for many years.”
Notably, the banks said the deal will fortify Provident and Lakeland’s positions as leading players in the tristate commercial real estate market.
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Thomas J. Shara