Bridge Bancorp Inc., the parent company of , revealed Tuesday that it will acquire in Southampton Village for $6.3 million — 136 percent of Hamptons State Bank’s book value as of Dec. 31, according to a Bridge Bancorp press release.
The acquisition will bring Bridgehampton National Bank’s total number of branches up to 20. Most branches are on the East End, but the bank also extends its reach into the towns of Brookhaven and Babylon. Once the merger is complete, the combined entity’s assets will total $1.1 billion and deposits will equal $1.0 billion, the release states.
Under the terms of the agreement, each share of Hamptons State Bank will be converted into 0.3434 shares of Bridge Bancorp common stock. As of Wednesday afternoon Bridge Bancorp shares were trading at $22.29.
Bridgehampton National Bank celebrated its centennial last year. Hamptons State Bank, a relatively new institution, was founded in 1997 and has remained a single-office bank.
"Like Bridgehampton, Hamptons State Bank is a proud community institution built on a solid foundation of customer and community commitment,” Bridge Bancorp President and CEO Kevin M. O'Connor was quoted as saying in a press release. “This is a natural extension of our franchise and our community and customer focus. Hamptons State Bank customers will benefit from access to an expanded network of branches and resources, while continuing to benefit from local management and decision making."
The deal isn’t final yet. According to the release, though the boards of directors of both Bridge Bancorp and Hamptons State Bank have unanimously approved the acquisition, it is subject to the approval of Hamptons State Bank shareholders and the approval of bank regulatory authorities, as well as other customary conditions. “The parties expect to close the transaction in the third quarter of 2011,” the release states.
Hamptons State Bank President and CEO Ronald M. Krawczyk said, "This transaction represents excellent value for Hamptons State Bank shareholders. … Our board of directors, in considering various strategic alternatives, placed great value on the compatibility of Bridgehampton National Bank's culture and strategy, its leadership and attractive stock attributes."