Ion in Connecticut to acquire Lincoln Park in N.J.

Ion Financial in Naugatuck, Conn., has agreed to buy Lincoln Park Bancorp in Pine Brook, N.J.

The $1.7 billion-asset Ion said in a press release last week that the $300 million-asset Lincoln 1st Bank will merge into its Ion Bank. The acquisition, which is expected to close in the third quarter of 2022, will expand Ion’s footprint into northern New Jersey. 

Lincoln Park’s minority shareholders will receive about $7.5 million in cash, subject to adjustment based on certain loans. The mutual holding company will be dissolved. 

Philip Vaz, the co-president and chief operating officer of Lincoln 1^st Bank, will become Ion’s New Jersey regional president. Erik Terpstra, Lincoln 1^st’s co-president and chief financial officer, will join Ion as director of risk. 

One Lincoln Park director will join Ion’s board of trustees.

Ion said it expects the merger to be accretive to its tangible capital and earnings.

"We're excited to welcome Lincoln 1st Bank to the Ion Bank family," David Rotatori, Ion Bank’s president and CEO, said in the release.

"Both banks share a commitment to exceptional customer service and are deeply committed to the communities they serve,” Rotatori added. “We also share similar values of developing authentic relationships with consumers and business customers and being their trusted financial advisor."

Hogan Lovells US advised Ion. Piper Sandler and Luse Gorman advised Lincoln Park.