Sterling Bank, which operates seven bank branches in New Jersey, agreed to buy Farnsworth Bancorp Inc. for about $19.1 million to expand its business in the southern part of the state.
Sterling Bank will pay $27.50 a share in cash or stock for Farnsworth, which owns four New Jersey bank branches, Mount Laurel, New Jersey-based Sterling said in a statement. The price is 11 percent more than Farnsworth Bancorp's share price of $24.70 on June 19, the most recent day the stock was traded.
Farnsworth Bancorp, which operates Peoples Savings Bank, had $106 million in assets as of March 31, Sterling Bank said in the statement.
``This permits us a little bit of a broader base to continue to expand,'' said Sterling Bank Chief Executive Officer Robert King in an interview. ``It fits in very nicely.''
Sterling Bank shares rose 13 cents, or 1.1 percent, to $12.01 in Nasdaq Stock Market composite trading, and have advanced 11 percent in the past year. Bordentown, New Jersey-based Farnsworth Bancorp fell 25 cents to $24.70 on June 19, the most recent day they traded, and have climbed 27 percent in the past year.
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