Dime Community Bank and Bridge Bancorp To Merge in $489 Million Deal
The merger is expected to be finalized and carried through during the first quarter of next year, according to American Banker. Dime and Bridge are both lenders, but Bridge focuses on commercial lending whereas Dime focuses on multi-family lending. Bridge is acquiring Dime, though the merged company will continue to operate under the name Dime. Bridge’s CEO, Kevin O’Connor, will serve as the CEO of the merged company.
“Our enhanced branch footprint and increased capital base will allow us to better serve the needs of our customers,” O’Connor said. “Both companies have strong balance sheets and demonstrated histories of low loan losses … which give me confidence that we will be well-positioned to succeed in any environment.”
Ideally, 15% of both company’s annual expenses will be eliminated, resulting in savings totaling $32 million. However, the merger itself can cost up to $60 million. Additionally, because the merged company will have assets worth over $10 billion, there will be an additional loss of $2 million in interchange fees. Finally, having more assets will increase compliance costs by $2 million.