Provident Financial Services Stock Slips 8% On Merger Deal With Lakeland Bancorp

Shares of Provident Financial Services, Inc. (PFS) are slipping nearly 8% on Tuesday morning after the parent company of Provident Bank announced an all-stock merger deal with Lakeland Bancorp Inc. (LBAI) valued at $1.3 billion.

PFS is currently trading at $21.32, down $1.84 or 7.94%, on the NYSE. The stock opened its trading at $23.19 after closing Monday's trading at $23.16. The stock has traded between $20.67 and $26.20 in the past 52-week period.

The combined company will have more than $25 billion in assets and $20 billion in total deposits.

Following the closing of the transaction, Lakeland shareholders will receive 0.8319 shares of Provident common stock for each share of Lakeland common stock they own. Provident shareholders will own 58% and Lakeland shareholders will own 42% of the combined company.

The combined company will operate under the "Provident Financial Services, Inc." name and the combined bank will operate under the "Provident Bank" name. The administrative headquarters of the combined company will be located in Iselin, New Jersey. The merger is expected to close in the second quarter of 2023.

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