SHORT HILLS, N.J., June 14, 2012 /PRNewswire/ -- Investors Bancorp, Inc. (NASDAQ: ISBC) and Marathon Banking Corporation announce a definitive merger agreement under which Investors Bancorp will acquire Marathon Banking Corporation for $135 million in cash consideration.
Marathon Banking Corporation is the U.S. subsidiary of Piraeus Bank S.A. and the parent corporation of Marathon National Bank of New York, a federally chartered commercial bank headquartered in Astoria, NY with $902 million in assets, $783 million in deposits, and 13 full-service branches in the New York metropolitan area. Upon completion of this transaction, Investors Bancorp will have 22 New York branches, representing 22% of its total branch network, totaling approximately $1.3 billion in deposits.
Kevin Cummings, President and CEO of Investors Bancorp, Inc. commented, "We are excited about the acquisition of Marathon Banking Corporation and its subsidiary Marathon National Bank of New York. Marathon is a highly regarded commercial bank whose franchise will continue the transformation of Investors into a full service commercial bank. Additionally, this transaction is a continuation of our strategy of expansion into the New York markets and more than doubles our existing New York branch network."Paul Stathoulopoulos, President and CEO of Marathon Banking Corporation, who will be joining the Investors Bank Board of Directors commented, "Investors has demonstrated a strong commitment to the Greek community and to the commercial real estate market. We are pleased to form this partnership with a bank that cares about their communities and can offer Marathon National Bank's customers enhanced and expanded services." The purchase price represents 151% of tangible book value and a 5.8% premium to deposits as of March 31, 2012. Investors Bancorp anticipates the transaction will be 5% accretive to its 2013 GAAP earnings before acquisition transaction charges and 7% accretive to its 2014 GAAP earnings. Investors also estimates the transaction will generate an 18% internal rate of return and result in 2.5% dilution to estimated fully-converted tangible book value at closing, with recovery to pre-closing book value in six months. The merger has been approved by each company's board of directors and is anticipated to close in the fourth quarter of 2012, subject to customary closing conditions including regulatory approvals.