JERSEY CITY, N.J. and MORRIS TOWNSHIP, N.J., May 19, 2011/PRNewswire/ -- The Provident Bank, a wholly owned subsidiary of Provident Financial Services, Inc. (NYSE: PFS), and Beacon Financial Corporation today announced the signing of a definitive agreement under which The Provident Bank will acquire all of the capital stock of Beacon Trust Company, a New Jersey limited purpose trust company, and Beacon Global Asset Management, Inc., an SEC-registered investment advisor incorporated in Delaware. Financial terms of the transaction contemplate cash consideration to Beacon Financial in an amount up to $10.5 million, based upon the acquired companies' financial performance in the three years following the closing of the transaction.
"We're excited about this opportunity to add the talented portfolio managers and trust administrators who have made Beacon a recognized market leader in New Jersey," said Provident's Chairman, President & CEO Christopher Martin. "This transaction will serve to significantly expand Provident's wealth management business throughout the state, which will now be centralized from Beacon's conveniently located offices in affluent Morris County. Coupled with Provident's 80-plus branch network, Beacon's expertise in trust and wealth management services will strategically position our organization to enhance market share and non-interest earnings growth."
Marc L. Paley, CEO and President of Beacon Financial, commented: "Beacon's business model of delivering exceptional client services and personalized asset management is a perfect fit for Provident which has a long history of providing a high level of customer service. Our clients will greatly benefit from Provident's existing branch banking platform and complementary products and financial services."
When the transaction closes, the assets under management of the combined entities, on a pro forma basis, will be approximately $1.65 billion. James D. Nesci, Provident's Chief Wealth Management Officer, will become president of the acquired entities, and will oversee their integration."The Provident Bank has provided banking services to its clients for over 172 years. The expansion of our wealth management business continues our focus on serving our clients' financial needs. We believe that our philosophy of providing exceptional service is shared with Beacon and its talented staff," said Nesci. "We also look forward to introducing Provident's Wealth Management clients to Beacon's sophisticated array of portfolio management solutions."