Cape Bancorp has agreed to acquire Colonial Financial Services for about $55 million. The transaction is expected to close in the first half of 205, with Colonial electing to take cash or shares of Cape Bancorp in the deal.
Cape Bancorp, based in Cape May Court House, NJ, is about twice the size of Vineland-based Colonial and had assets of about $1.1 billion at the end of June, 1014. Colonial will be merged into Cape's subsidiary Cape Bank, which currently has 14 branch offices in Atlantic and Cape May Counties. Cape also has loan offices in Mount Laurel, NJ, and Radnor, Pa.
Colonial, established in 1913 as a small mortgage associaton in Bridgeton, NJ, now has nine locations in South Jersey, including seven in Cumberland County and two in Gloucester County, which will be new territory for Cape Bank.
The Cape Bancorp-Colonial Financial Services acquisition is the second major banking transaction in Southern New Jersey in 2014. Sturdy Savings Bank, also based in Cape May Court House, earlier agreed to purchase seven retail bank branches from Sun National Bank, subject to approval of the FDIC and the New Jersey Department of Banking and Insurance.
The branch offices, located in Atlantic and Cape May Counties, have approximately $182 million in total deposits. The acquisition is expected to be completed in the first quarter of 2015.