Bridgehampton-headquartered BNB Bank and Dime Community Bank, based in Brooklyn, are merging in a transaction valued at $489 million, the companies announced Wednesday.
The combined bank will operate under the Dime Community Bank name with its new headquarters in Hauppauge. The combined company will have more than $11 billion in assets, more than $8 billion in total deposits, and 66 branches from Montauk to Manhattan.
“This highly compelling combination will allow us to build on our complementary strengths and provide significant value for shareholders,” said Kevin O’Connor, president and CEO of BNB, who will be CEO of the merged banks. “Dime has earned its strong reputation in the greater New York metropolitan market, and I’m thrilled to partner with them. Our enhanced branch footprint and increased capital base will allow us to better serve the needs of our customers.”
The merger comes after Uniondale-based Flushing Financial Corporation announced it’s acquiring Empire Bancorp, Inc., located in Islandia, and New Jersey-based Investors Bancorp acquired Gold Coast Bank, also headquartered in Islandia, last year.
“This merger is the next logical step in Dime’s journey and significantly accelerates our business model transformation,” said Dime Community Bank CEO Kenneth J. Mahon, who will serve as executive chairman of the combined company. “We expect our shareholders to benefit from owning a stronger, more attractive, and more formidable competitor in the New York market.”
The merger was unanimously approved by the boards of directors of both companies. The combined company’s board of directors will have 12 directors, half from BNB and half from Dime.
Marcia Hefter, the current chairwoman of BNB’s board of directors, will serve as the independent lead director of the combined company. Stuart Lubow, the current president of Dime, will serve as president and chief operating officer of the merged bank.
Certain retail locations in eastern Long Island will operate under the BNB Bank name for at least one year until the transition is complete. The merger is expected to close in the first quarter of 2021, subject to regulatory approvals and approval by the shareholders of each company.
This story first appeared on LongIslandPress.com.