Business & Tech
Madison National Bought By Manhattan Bank
Local institution will be renamed First National Bank of New York.
Hauppauge-based Madison National Bank has been acquired by Manhattan-based FNBNY Bancorp and its parent Modern Capital Partners for $33.7 million.
Under the agreement, Madison will become a full-service subsidiary of FNBNY and be renamed the First National Bank of New York.
The local bank's Chief Executive Dan Murphy will take over as CEO of First National and the two companies said they don't expect any of Madison's three branches to close.
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"In addition to providing what we believe is an attractive price to our stockholders in light of market conditions, [the merger] also provides the bank with additional capital immediately, and access to future capital, if needed, which will allow us to continue to grow our franchise and provide our employees greater opportunities," Murphy said in a statement.
FNBNY purchased 182,260 new shares of Madison's stock, injecting $1.5 million of new capital into the local bank. Shareholders of Madison will get $9.09 per share as part of the deal.
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Madison has been told by the Office of the Comptroller of the Currency during the second quarter to limit loan growth so it was equal with capital growth.
"Madison's willingness to join with FNBNY to establish a significant, well diversified and well capitalized "new" participant on the broader banking landscape of New York State is a very important step for FNBNY and illustrates our mutual commitment and policy with Madison to combine vibrant customer relationships with the effective delivery of the sophisticated and modern banking services that these times demand to the retail, commercial and municipal markets in which FNBNY will have a significant presence," said Ronald Krolick, president and chief executive officer of FNBNY, in a statement. "We both recognize that strong banks are a vital member of strong communities, and are dedicated to improving the livelihood of the citizens in Madison's communities and elsewhere."
Madison National Bank could not be reached for additional details of the merger or comment.
