PROVIDENCE – Citizens Financial Group Inc. is once again expanding its mid-Atlantic presence with the $3.5 billion acquisition of a New Jersey-based bank, the company announced on Wednesday.
The acquisition of Investors Bancorp Inc. will add 154 branches across the mid-Atlantic – 130 of which will be in the New York City metro area – along with $27 billion in total assets and $20 billion in deposits. It will also allow Citizens to expand its middle market, small business and consumer customers, according to a press release. The deal, which is expected to close in the first or second quarter of 2022, comes two months after Citizens agreed to acquire 80 branches and online deposits for eastern U.S. locations of European bank HSBC Holdings. The HSBC deal is expected to be finalized early next year.
Together, the two deals will put the parent company for Citizens Bank in the top-10 deposit rankings for the New York City metro region and increase diluted earnings per share by 8.8% by 2023.
“The acquisition of Investors, following on the heels of the acquisition of HSBC’s East Coast branches, further strengthens our formidable franchise in the Northeast, together adding roughly 1 million customers and boosting our near- and long-term growth potential,” Bruce Van Saun, Citizens chairman and CEO, said in a statement. “We are confident in our ability to successfully integrate these acquisitions, and to over time deliver the same attractive offerings to customers and strong financial performance in the New York City metro region and New Jersey as we do in other major metro areas we serve.”
Under the terms of the transaction, Citizens will acquire all outstanding shares for Investors through a combination of cash and stock. Once the deal closes, Investors shareholders will own about 14% of the combined company, the release stated.
Several management employees for Investors will join Citizens under the deal, including Kevin Cummings, its chairman and CEO, the release stated.
