BRIDGEHAMPTON and SOUTHAMPTON, N.Y., Feb. 8, 2011 (GLOBE NEWSWIRE) -- The Boards of Directors of Bridge Bancorp, Inc. (Nasdaq:BDGE), the holding company for Bridgehampton National Bank, and Hamptons State Bank jointly announced today a definitive merger agreement under which Bridgehampton National Bank will acquire Hamptons State Bank.
The transaction augments Bridge Bancorp's franchise in eastern Long Island and the combined entity will serve customers through a network of 20 branches and have total assets of approximately $1.1 billion and deposits of $1.0 billion.
Under the terms of the Agreement, each share of Hamptons State Bank will be converted into 0.3434 shares of Bridge Bancorp common stock. Bridge Bancorp will issue approximately 274,000 shares, which will represent 4.1% of the total shares of Bridge Bancorp common stock to be outstanding. Based upon Bridge Bancorp's closing stock price on February 7, 2011, the transaction value is approximately $6.3 million and represents 136% of Hamptons State Bank's tangible book value as of December 31, 2010, and a 4.4% premium on core deposits.The acquisition, once closed, is expected to be accretive to Bridge Bancorp's earnings, including anticipated net cost savings, which are expected to be 35% or more of Hamptons State Bank's current non-interest expense. Similarly, the merger is expected to be accretive to Bridge Bancorp's book value and tangible book value. In announcing the transaction, Kevin M. O'Connor, President and CEO of Bridge Bancorp, Inc. said, "Like Bridgehampton, Hamptons State Bank is a proud community institution built on a solid foundation of customer and community commitment. This is a natural extension of our franchise and our community and customer focus. Hamptons State Bank customers will benefit from access to an expanded network of branches and resources, while continuing to benefit from local management and decision making." Ronald M. Krawczyk, President and CEO of Hamptons State Bank, commenting on the Agreement said, "This transaction represents excellent value for Hamptons State Bank shareholders. I am extremely proud of our fine organization and its legacy of customer and community service. Bridgehampton National Bank is an outstanding in-market competitor sharing our passion for customer service and our dedication to improving the quality of life in the communities we serve. Our Board of Directors, in considering various strategic alternatives, placed great value on the compatibility of Bridgehampton National Bank's culture and strategy, its leadership and attractive stock attributes."