Northfield Bancorp, Inc. (NASDAQ: NFBK) and Flatbush Federal Bancorp, Inc. (OTCBB: FLTB) announced the signing of a definitive merger agreement under which Northfield Bancorp will acquire Flatbush Federal Bancorp in an all stock transaction valued at $6.50 per share of Flatbush common stock. The transaction represents an aggregate value to Flatbush Federal’s minority stockholders of approximately $8.1 million.
The mergers have been approved by the Boards of Directors of each company and are expected to close in the third quarter of 2012, subject to several conditions, including the receipt of regulatory approvals and the approval of the stockholders of Flatbush Federal Bancorp and the members of Flatbush Federal Bancorp, MHC.
John W. Alexander, chairman, president and CEO of Northfield Bancorp said, “We are excited to announce the acquisition of Flatbush Federal Bancorp as it represents a great fit for Northfield. This transaction is consistent with Northfield’s strategic objective to expand its Brooklyn footprint and the three additional branches enhance our ability to provide outstanding service to our customers and the Brooklyn community.”
Jesus R. Adia, chairman, president and CEO of Flatbush Federal Bancorp said, “We, too are excited about this transaction as this allows our customers to take advantage of a larger branch network in Brooklyn and the other communities that Northfield services as well. In addition to the added service to our customers, the transaction is most beneficial to our shareholders. We look forward to this new relationship.”
At September 30, 2011, Flatbush had total assets of $144.1 million and deposits of $114.0 million. On January 13, 2012, Flatbush closed on the sale of its main office building and adjoining real estate resulting in an after-tax gain of approximately $4.9 million. Northfield Bancorp, Inc. anticipates the transaction will be accretive to book value per share, tangible book value per share and earnings per share based on expected cost savings estimates.
Flatbush Federal Bancorp, Inc. is the holding company for Flatbush Federal Savings and Loan Association, which was founded in 1883 and operates three full-service banking offices in Brooklyn, New York.