Columbia Financial in Fair Lawn, N.J., has agreed to buy Northfield Bancorp in Woodbridge, N.J.
The $11 billion-asset Columbia said in a press release that it will pay $597 million in cash and stock for the $5.7 billion-asset Northfield. The deal is expected to close in the third quarter.
In connection with the deal, Columbia plans to conduct a second-step conversion to become a fully stock-owned company. Northfield would merge into Columbia’s new holding company immediately after the conversion is completed.
Thomas Kemly will remain president and CEO. Steven Klein, Northfield’s chairman, president and CEO, will become chief operating officer. Four Northfield directors, including Klein, will join Columbia’s board.
“The simultaneous merger allows us to immediately leverage a portion of the capital raised and materially augment financial results,” Kemly said in the release. “Northfield has built an excellent deposit franchise with a conservative credit culture, which makes it an ideal fit with Columbia and provides great opportunities for future growth.”
Keefe, Bruyette & Woods advised Columbia and will serve as the marketing agent tied to the conversion. Kilpatrick Townsend & Stockton was Columbia’s legal counsel. Raymond James and Luse Gorman advised Northfield.