Columbia Bank and RSB Bancorp signed a definitive merger agreement.
Under the terms of the merger agreement, depositors of Roselle will become depositors of Columbia Bank and will have the same rights and privileges in Columbia Bank, the mutual holding company parent of Columbia Bank, as if their accounts had been established in Columbia Bank on the date established at Roselle.
“We are pleased with the opportunity to welcome Roselle Bank and its employees to Columbia Bank. The transaction will combine two community banks with strong, loyal customer bases, while expanding the Columbia Bank franchise in Union, Somerset and Hunterdon Counties,” said Mr. Thomas J. Kemly, Columbia’s President and Chief Executive Officer.
As part of the transaction, Columbia Financial, will issue additional shares of its common stock to Columbia Bank, MHC in an amount equal to the fair value of Roselle as determined by an independent appraiser. These shares are expected to be issued immediately prior to completion of the merger.
Roselle Bank is a savings bank that was established in 1889 and operates four banking offices in Union, Somerset and Hunterdon Counties. As of September 30, 2019, Roselle Bank had total assets of $442 million, loans of $171 million, deposits of $338 million and equity capital of $61 million.
Columbia has offered full employment to all Roselle employees, excluding those with existing change-in-control agreements with Roselle, and has agreed to add one current member of Roselle’s Board of Directors to Columbia Bank’s Board of Directors following the completion of the merger.
Upon closing, Roselle Bank will merge into Columbia Bank.
Columbia was advised in this transaction by the investment banking firm of Boenning & Scattergood, and represented by the law firm of Kilpatrick Townsend & Stockton. Roselle was advised by the investment banking firm of Sandler O’Neill + Partnersand represented by the law firm of Luse Gorman.
Columbia Bank is a federally chartered savings bank headquartered in Fair Lawn, NJ.
