Ion Financial in Naugatuck, Conn., and NVE Bancorp in Englewood, N.J., have agreed to merge.
The mutual holding companies said in a press release that Ion, the parent of the $2.1 billion-asset Ion Bank, will absorb the $600 million-asset NVE Bank. The other terms of the deal were not disclosed.
NVE Bank will be operated as a division of Ion Bank.
Ion said it expects the merger to be accretive to tangible capital and earnings. As a part of the merger, a charitable foundation will be formed with an initial contribution of $5 million.
Robert Rey, NVE Bank’s president and CEO, has the option of becoming president and CEO of Ion’s NVE division. John Spencer will become president of the division. All NVE directors will be offered board seats at Ion Bank.
“The combination with Ion Bank … was a great opportunity for us to continue serving our customers with a larger platform, offering more branch locations and a greater suite of products and services,” Rey said in the release.
Luse Gorman and The Kafafian Group advised NVE. Hogan Lovells US advised Ion.