Kevin Cummings, chairman and CEO of Investors Bank
Investors Bank, which is based in Short Hills, N.J., announced Wednesday that it is acquiring Islandia-based Gold Coast Bank.
Investors made the announcement on the eve of Thursday’s scheduled quarterly earnings call.
Investors has 147 branches in New York and New Jersey, including seven on Long Island: East Northport, Commack, Wantagh, Mineola, Manhasset, Merrick and Franklin Square.
With the acquisition, Investors roughly doubles its footprint on Long Island. In addition to its Islandia headquarters, Gold Coast has branches in Huntington, East Setauket, Farmingdale, Mineola, Southampton and Brooklyn.
Gold Coast stockholders will be paid in a combination of stock and cash valued at $63.6 million, inclusive of outstanding dilutive securities and based on Investors’ closing price of $11.20 on July 23, 2019, according to terms of the deal.
Founded in 2008, Gold Coast had assets of $563 million, loans of $463 million and deposits of $486 million as of March 31, 2019.
According to John Tsunis, chairman and CEO of Gold Coast, the deal will provide Gold Coast customers with access to expanded product and service offerings.
“Additionally, Investors’ community banking approach and customer focus is highly consistent with the model that has made us successful since our inception,” Tsunis said in a statement.
“We are pleased to partner with Gold Coast, a commercial bank with deep ties to the Long Island community and a strong track record of growth,” Investors Chairman and CEO Kevin Cummings said in a statement. “This transaction strengthens Investors’ current suburban Long Island franchise and deepens our presence in this large, affluent market.”
The deal, which was approved by the boards of directors of both Investors and Gold Coast, is expected to close in the first quarter of 2020. Its completion is subject to Gold Coast’s stockholder approval and regulatory approvals.