Provident Financial receives FDIC approval for Lakeland Bancorp merger

Provident Financial Services (PFS), the parent company of Provident Bank, and Lakeland Bancorp (LBAI), the parent company of Lakeland Bank, announced receipt of regulatory approvals from the Federal Deposit Insurance Corporation and the New Jersey Department of Banking and Insurance for Provident and Lakeland to complete their previously announced merger. With these approvals, the only pending regulatory approval required to complete the merger is the approval of the Board of Governors of the Federal Reserve System. Upon completion of the merger, the combined company will operate under the Provident name. “We are very pleased to be closer to combining our two great banks to create a top-tier super-community bank. This merger will afford us greater opportunity to serve the financial needs of our customers and communities, and to continue to expand and grow our product offerings,” said Anthony Labozzetta, President and CEO of Provident Bank. The regulatory approvals contain certain conditions and commitments, including that Provident complete a $200M capital raise prior to completion of the merger. Provident intends to satisfy this condition by raising $200M of Tier 2 qualifying subordinated debt prior to completing the merger. The two companies also expect to extend their merger agreement to June 30, 2024, to provide time to receive the remaining regulatory approval and to complete the subordinated debt issuance. The merger is expected to be completed in the second calendar quarter, subject to the receipt of approval for the merger from the Board of Governors of the Federal Reserve System, completion of the debt issuance and satisfaction of customary closing conditions.