Shares of Investors Bancorp (ISBC) - Get Investors Bancorp Inc Report were rising in premarket trading Wednesday after Citizens Financial Group (CFG) - Get Citizens Financial Group, Inc. Report said it reached an agreement to acquire the retail bank in a $3.5 billion cash-and-stock deal.
The acquisition is designed to give Citizens Financial an even larger footprint in the the Northeast region through the addition of 154 branches located in the greater New York City and Philadelphia metropolitan areas and across New Jersey.
"The acquisition of Investors, following on the heels of the acquisition of HSBC's East Coast branches, further strengthens our formidable franchise in the northeast, together adding roughly one million customers and boosting our near and long-term growth potential," said CEO Bruce Van Saun.
The deal is expected to close in the first quarter of 2022. Citizens will operate across some of the biggest commercial banking markets in the U.S., with the deal targeting large and dense population centers and areas of high-income, according to Wednesday's release.
The acquisition comes on the heels of Citizens purchase of 80 East Coast branches and the national online deposit business from HSBC Bank in the New York City area,
"We are confident in our ability to successfully integrate these acquisitions, and to over time deliver the same attractive offerings to customers and strong financial performance," said Saun.
The company identified about $130 million of fully-phased in annual cost savings with total estimated pre-tax integration costs of approximately $400 million.
Shares of Citizens Financial were down 3.5% in premarket trading while shares of Investors Bancorp jumped 6.6% to $13.88.