WAYNE, N.J., April 28, 2011 /PRNewswire/ -- The Boards of Directors of Valley National Bancorp (NYSE: VLY) ("Valley") and State Bancorp, Inc. (Nasdaq: STBC) ("State") announced today that the companies have entered into a merger agreement whereas the shareholders of State Bancorp will receive a fixed one for one exchange ratio for Valley National Bancorp common stock, after adjusting for Valley's recently declared five percent stock dividend. The transaction is valued at an estimated $222 million, based on Valley's average ten day closing stock price between April 14, 2011 through April 28, 2011, adjusted for the stock dividend payable on May 20, 2011.
State, with $1.6 billion in assets, $1.1 billion in loans, and $1.3 billion in deposits, covering four New York counties, has a 17 branch network and will provide an entrée into Long Island for Valley, creating a strong metropolitan regional commercial bank. State's attractive demographic concentration in Manhattan, Queens, Nassau and Suffolk counties and experienced management team will expand the footprint of Valley's penetration into this contiguous market.
The merger with State is a non-taxable transaction that is expected to make Valley the 37th largest U.S. publicly traded commercial bank. The combined bank will have approximately $16.0 billion in assets, $10.5 billion in loans, $11.0 billion in deposits, 215 branches covering 16 counties from northern and central New Jersey to central Long Island, including Manhattan, Brooklyn and Queens.
"Valley has always employed a highly focused growth strategy based on creating long-term shareholder value," remarked Valley Chairman, President & CEO Gerald H. Lipkin. Mr. Lipkin added, "State shares a similar corporate culture to Valley with its middle market commercial corporate emphasis. Tom O'Brien, with the support of the State Bancorp Board of Directors, has done an excellent job of revitalizing the State franchise over the past five years and we are excited about his team, competitive positioning and attractive client base. With this merger, we add another attractive and well-positioned institution with tremendous potential in a region with very strong demographics. Together we will be able to do even more for our communities as a larger and more heavily capitalized institution."The Boards of Directors of both companies have unanimously approved the transaction. Transaction closing is anticipated early in the fourth quarter of 2011, subject to approvals from regulators and other customary conditions.