Provident New York Bancorp’s wholly owned subsidiary Provident Bank has agreed to purchase US-based Gotham Bank in a cash deal worth $40.5m.
According to the agreement, Gotham Bank will join Provident Bank and its shareholders will receive a per share price equal to the sum of 125% of Gotham Bank’s adjusted tangible net worth as well as the implied exercise price of options outstanding.
Provident Bank president and CEO Jack Kopnisky said the acquisition continues the implementation of its strategic objective to extend reach into the New York City market.
The transaction is expected to close in the third quarter of 2012, subject to regulatory and Gotham Bank shareholder approvals and customary closing conditions.
As of 30 September 2011, Gotham Bank operates as a community-oriented commercial bank through its branch in Manhattan and reported $169m of loans and $335m of deposits.