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TD Banknorth buys second N.J. bank
Friday, April 14, 2006
BY SAM ALI
Star-Ledger Staff
Less than nine months after buying Hudson United Bank, TD Banknorth, a Maine bank with aspirations to expand its geographic footprint in the Northeast, has snapped up another home-grown New Jersey bank.
TD Banknorth yesterday said it was buying Saddle Brook-based Interchange Financial Services for $480.6 million.
Founded in 1969, Interchange Bank has $1.6 billion in assets and 29 branches in the affluent Bergen County market. TD Banknorth re cently completed its $1.9 billion purchase of Hudson United and currently operates 102 branches in New Jersey.
"This is an excellent comple ment to our recent acquisition of Hudson United," TD Bank north Chief Executive William Ryan said.
The Interchange purchase -- its second acquisition since Canada's Toronto-Dominion Bank in March paid almost $4 billion for a 51 percent majority stake in the Portland, Maine-based company -- will transform TD Banknorth into New Jersey's ninth-largest bank and the fifth-largest in Bergen County, based on total deposits.
Under the terms of the merger, each outstanding share of Interchange common stock will be converted into the right to receive $23 in cash.
For Interchange Bank Chief Executive Anthony Abbate, who has been at the helm of Bergen Coun ty's largest bank for the past 25 years, TD Banknorth made an offer that was simply too good to refuse.
"Over the years, we have had a lot of tire kickers coming around and everyone was looking for a bargain, and suddenly out of the clear blue sky, TD Banknorth approached us and gave us a very se rious number and one we could not reject because it was a full price," the 66-year-old Abbate said.
He said TD Banknorth approached Interchange two weeks ago.
Abbate said he will remain employed by TD Banknorth for one year in a consulting capacity.
Beyond that, however, "I plan to spend more time in my home in Florida," he said. "I've been in banking 45 years and I think it's time for me to do something else and smell the roses."
For Interchange Bank's 325 employees, the transaction will result in some consolidation, Interchange Chief Operating Officer Anthony Labozzetta said.
"We believe this is going to be a very staff- and people-friendly transaction especially for the front line, point-of-contact employees," La bozzetta said. "And for the others, there will be opportunities with the new company. Unfortunately, there will always be synergies from the redundant tasks that will have to be consolidated."
TD Banknorth will finance the deal by selling 13 million shares of its stock to its parent, TD Bank Financial Group, at a price of $31.17 per share, for a total of $405.2 million.
The deal is expected to close early in the first quarter of 2007.
TD Banknorth buys second N.J. bank
Friday, April 14, 2006
BY SAM ALI
Star-Ledger Staff
Less than nine months after buying Hudson United Bank, TD Banknorth, a Maine bank with aspirations to expand its geographic footprint in the Northeast, has snapped up another home-grown New Jersey bank.
TD Banknorth yesterday said it was buying Saddle Brook-based Interchange Financial Services for $480.6 million.
Founded in 1969, Interchange Bank has $1.6 billion in assets and 29 branches in the affluent Bergen County market. TD Banknorth re cently completed its $1.9 billion purchase of Hudson United and currently operates 102 branches in New Jersey.
"This is an excellent comple ment to our recent acquisition of Hudson United," TD Bank north Chief Executive William Ryan said.
The Interchange purchase -- its second acquisition since Canada's Toronto-Dominion Bank in March paid almost $4 billion for a 51 percent majority stake in the Portland, Maine-based company -- will transform TD Banknorth into New Jersey's ninth-largest bank and the fifth-largest in Bergen County, based on total deposits.
Under the terms of the merger, each outstanding share of Interchange common stock will be converted into the right to receive $23 in cash.
For Interchange Bank Chief Executive Anthony Abbate, who has been at the helm of Bergen Coun ty's largest bank for the past 25 years, TD Banknorth made an offer that was simply too good to refuse.
"Over the years, we have had a lot of tire kickers coming around and everyone was looking for a bargain, and suddenly out of the clear blue sky, TD Banknorth approached us and gave us a very se rious number and one we could not reject because it was a full price," the 66-year-old Abbate said.
He said TD Banknorth approached Interchange two weeks ago.
Abbate said he will remain employed by TD Banknorth for one year in a consulting capacity.
Beyond that, however, "I plan to spend more time in my home in Florida," he said. "I've been in banking 45 years and I think it's time for me to do something else and smell the roses."
For Interchange Bank's 325 employees, the transaction will result in some consolidation, Interchange Chief Operating Officer Anthony Labozzetta said.
"We believe this is going to be a very staff- and people-friendly transaction especially for the front line, point-of-contact employees," La bozzetta said. "And for the others, there will be opportunities with the new company. Unfortunately, there will always be synergies from the redundant tasks that will have to be consolidated."
TD Banknorth will finance the deal by selling 13 million shares of its stock to its parent, TD Bank Financial Group, at a price of $31.17 per share, for a total of $405.2 million.
The deal is expected to close early in the first quarter of 2007.
posted by Jones Lang LaSalle NJ News Blog at 1:28 PM
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