OceanFirst entering three states with Partners deal

OceanFirst Financial in Red Bank, N.J., has agreed to buy Partners Bancorp in Salisbury, Md. 

The $11.8 billion-asset OceanFirst said in a press release Thursday that it will pay $186 million in cash and stock for the $1.6 billion-asset Partners. The deal, which is expected to close in the first half of 2022, priced Partners at 146% of its tangible book value.

Partners has two banks: Bank of Delmarva and Virginia Partners Bank. The company has $1.1 billion of loans and $1.4 billion of deposits. 

OceanFirst will enter Delaware, Maryland and Virginia with the acquisition.

OceanFirst said it expects the deal to be about 10% accretive to its 2023 earnings per share. It should take three years for OceanFirst to earn back an estimated 4% dilution to its tangible book value.

OceanFirst plans to cut 40% of Partners annual noninterest expenses. The company expects to incur $20 million of merger-related expenses. 

“The banks that comprise Partners … are each strong organizations operating community commercial banking models and have demonstrated strong growth in their markets,” Christopher Maher, OceanFirst’s chairman and CEO, said in the release. 

“Joining the OceanFirst family will allow these highly professional commercial bankers to continue to build new relationships while leveraging the technology and operating efficiency offered by our company,” Maher added.

Raymond James and Skadden, Arps, Slate, Meagher & Flom advised OceanFirst. Piper Sandler and Troutman Pepper Hamilton Sanders advised Partners.