The parent company of Naugatuck-based Ion Bank has entered an agreement to acquire a New Jersey lender and merge their operations.
In a statement, Ion Financial said it will combine with Lincoln Park Bancorp, the corporate parent of Lincoln 1st Bank, in a transaction valued at approximately $7.5 million. Investors in Lincoln Park Bancorp are expected to receive $10.10 in cash per share of common stock.
With the completion of the deal — projected to take place in the third quarter of 2022 — Lincoln 1st Bank will merge into Ion Bank, and Lincoln Park Bancorp will be dissolved.
The linkup would give Ion Bank, for the first time, a presence in northern New Jersey. According to its website, Lincoln 1st Bank has its headquarters in Pine Brook, New Jersey, and branches in Lincoln Park and Montville.
“We’re excited to welcome Lincoln 1st Bank to the Ion Bank family,” said Ion Bank President and CEO David Rotatori. “Both banks share a commitment to exceptional customer service and are deeply committed to the communities they serve. We also share similar values of developing authentic relationships with consumers and business customers and being their trusted financial advisor.”
Philip B. Vaz, co-president and chief operating officer of Lincoln 1st Bank, is expected to join Ion Bank as its New Jersey regional president and Erik Terpstra, co-president and CFO of Lincoln 1st Bank, is expected to join Ion Bank as its director of risk. The merger agreement also requires that one director of Lincoln Park Bancorp and Lincoln 1st Bank serving immediately before the closing of the transaction be appointed to the board of trustees of Ion Financial and the board of directors of Ion Bank.
Ion Bank has its highest concentration of branches in and around Naugatuck and Waterbury, with offices in towns and cities such as Prospect, Middlebury, Watertown and Meriden, among other communities in the region. The lender has also pushed north into the Hartford area, opening locations in Farmington and South Windsor.
