Dime Commercial Bancshares in Hauppauge, N.Y., has agreed to buy ES Bancshares in Staten Island, N.Y.
The $15 billion-asset Dime said in a press release that it will pay $58 million in cash and stock for the parent of the $596 million-asset Empire State Bank. The deal, which is expected to close in the first quarter, priced ES Bancshares at 109% of its tangible book value.
Empire State has five branches, $596 million in loans and $491 million in deposits.
The acquisition “represents another logical step in Dime’s growth strategy,” Stuart Lubow, Dime’s president and CEO, said in the release.
“Staten Island is an attractive banking market that has untapped potential for Dime,” Lubow added. “Empire is a well-run commercial bank that has developed a strong deposit base. … Together, we will be well-positioned to continue delivering the personalized service our customers value.”
The deal should be 3.5% accretive to Dime’s earnings per share. It should take less than three years for Dime to earn back an estimated 2% dilution to its tangible book value.
Luse Gorman advised Dime. FinPro Capital Advisors and Kilpatrick Townsend & Stockton advised ES Bancshares.