Fredericksburg’s Virginia Partners Bank plans to merge into OceanFirst Financial Corp. of New Jersey, the two companies announced Tuesday.
OceanFirst and Partners Bancorp, the parent company of the Bank of Delmarva and Virginia Partners Bank, said they had entered into an agreement valued at $186 million that would result in the Partners banks becoming OceanFirst banks.
The combined banks would have approximately $13.5 billion in assets, $9.3 billion in loans and $11.2 billion in deposits, according to a joint news release. The acquisition of Partners would expand OceanFirst’s footprint into Delaware, Maryland and Virginia.
“This partnership creates a powerful and innovative financial services provider better able to serve its clients and communities of today and tomorrow,” said Lloyd B. Harrison, III, chief executive officer of Partners. “The team at OceanFirst has built and maintains a high quality banking franchise, and there is no better team with which to unite to deliver community-style banking and to capitalize on the opportunities presented by an evolving industry.”
The merger is expected to close in the first half of 2022, pending approval of Partners stockholders and regulators. Under the terms of the deal, which has been approved by the boards of directors of both companies, Partners stockholders would be able to exchange each share of common stock for $10 in cash or 0.4512 shares of OceanFirst common stock. But the agreement puts a 40 percent cap on the total amount of Partners common stock that can be cashed in.