Columbia Financial in Fair Lawn, N.J., has agreed to buy Freehold Bancorp in Freehold, N.J.
The $9 billion-asset Columbia said in a press release Thursday that the $300 million-asset Freehold will convert to a federal savings bank and operate as a wholly-owned subsidiary. Freehold Bank will be merged into Columbia Bank two years after the holding companies have merged.
The deal is expected to close in the fourth quarter.
“We think this is exactly the kind of deal that the company should be doing, and [we] continue to believe that management is focused on smartly building the franchise, further leveraging capital and bringing Columbia closer to an eventual second-step,” Mark Fitzgibbon, an analyst at Piper Sandler, wrote in a client note.
Columbia was advised by Boenning & Scattergood and Kilpatrick Townsend & Stockton. Freehold was advised by FinPro Capital Advisors and Stevens & Lee.