Investors Bancorp Expands Into Princeton

Princeton, NJ– Investors Bancorp, Inc. acquired The Bank of Princeton Tuesday night for $154 million, the banks announced.

After the deal is finalized, Investors Bank will add 13 branches primarily in the greater Princeton area and in Philadelphia, PA. As of March 31, 2016, The Bank of Princeton had assets of $1.0 billion, loans of $842 million and deposits of $820 million. Its net income was $11 million last year, implying a return on average assets of 1.12% and return on average equity of 13.0%.

Investors Bancorp will now be able to deliver a wide range of comprehensive retail and commercial banking services through a combined network of 156 branches throughout the Philadelphia to New York City corridor.

Investors Bancorp will rank fourth in deposits in Mercer County, an area with per capita income well above national and regional averages.

"We are pleased to partner with The Bank of Princeton, a commercial bank with a track record of strong profitability and growth," Investors Bancorp's President and CEO Kevin Cummings said. "This merger will establish an important presence for Investors Bank in Princeton and will introduce us to the Philadelphia market. It will also add scale to our current Mercer County markets."

"We believe The Bank of Princeton's customers and stockholders will benefit greatly from this transaction,” Bank of Princeton President Edward Dietzler said. “Investors Bank brings additional retail and business banking products, expanded lending capabilities and capital strength that will enable the combined company to better compete in our marketplace. Our officers and employees look forward to joining the Investors Bank team."

Under the terms of the agreement, 60% of The Bank of Princeton's common shares will be converted into Investors Bancorp common stock and the remaining 40% will be exchanged for cash.

The Bank of Princeton's stockholders will have the option to elect to receive either 2.633 shares of Investors Bancorp common stock or $30.75 in cash for each common share of The Bank of Princeton, subject to proration to ensure that in the aggregate 60% of The Bank of Princeton's shares will be converted into Investors Bancorp common stock.

Investors Bancorp will create an advisory board consisting of certain members of The Bank of Princeton's board of directors. Key senior executives will remain with Investors Bancorp through merger integration.

The Investors Charitable Foundation is expected to allocate $1 million to support the communities that The Bank of Princeton currently serves.

The Investors Charitable Foundation supports initiatives in the arts, education, youth development, affordable housing, and health and human services. Since its establishment in 2005, the Investors Charitable Foundation has dedicated more than $15 million in support of the communities the bank serves. In May 2014, in connection with its second step conversion, an additional $20 million was contributed to the Investors Charitable Foundation.