Cranbury bank buying Amboy branches

By: centraljersey.com
The Cranbury-based 1st Constitution Bank is acquiring three branch offices of Amboy Bank, including the one on New Amwell Road in Hillsborough.
The planned purchase, announced Dec. 31, represents approximately $110 million in deposits, and is subject to regulatory approval and certain closing conditions, according to a press release from 1st Constitution Bank. The transaction is expected to close during the first quarter of 2011.
The agreement also includes the acquisition of Amboy Bank branch offices in Rocky Hill and Hopewell.
"The acquisition enhances the overall footprint of 1st Constitution’s retail branch banking network in Mercer and Somerset counties, and is in line with the institution’s long-term strategic plan," Robert F. Mangano, president and chief executive officer of 1st Constitution Bank, said in the release.
He further stated that the large proportion of non-interest-bearing and consumer savings deposit accounts acquired would further complement 1st Constitution’s already favorable core deposit mix.
1st Constitution will acquire the deposit liabilities of the purchased branches for cash, with an option to purchase certain loan relationships associated with three branch offices, on or before closing, according to the release. 1st Constitution will pay a deposit premium of $5.25 million, subject to certain adjustments, for approximately $110 million of deposit liabilities.
This agreement also provides for the acquisition of the real estate on which the acquired branches are located for cash in the amount of $4.6 million, the release states. When consummated, 1st Constitution Bank is expected to have total assets of approximately $800 million.
As of Sept. 30, 2010, 1st Constitution Bancorp had total assets of $692.5 million, and through its primary subsidiary, 1st Constitution Bank, operates 12 branch banking offices in Cranbury (two), Fort Lee, Hamilton, Hightstown, Jamesburg, Lawrenceville, Montgomery, Plainsboro, Perth Amboy, Princeton and West Windsor.