The parent companies of BNB Bank and Dime Community Bank have successfully completed the anticipated merger. In an announcement, the organizations issued a joint statement confirming the all-stock merger.
The newly combined company will trade under the Dime Community Bank brand, listing on the Nasdaq Global Select Market from today (February 1, 2021). The newly merged entity will oversee some $12 billion in assets at more than 60 branches across the New York region.
“The completion of this transaction unites two iconic New York community banks creating the premier community-based business bank in our region,” said chief executive officer Kevin O’Connor and executive chairman Kenneth Mahon. The company will combine its banking technology infrastructure during the second quarter of 2021 and said that it expects “very few branch consolidations” due to what it describes as “limited overlap” with the two banks’ legacy branch networks.
The current Dime branch at One Huntington Quadrangle, Suite 1N06, Melville, and the BNB branch at 2222 Merrick Road, Merrick are set to close on April 16, 2021. Both are locating to new “consolidated” branches nearby.
“Our enhanced branch footprint and increased capital base will allow the combined bank to better serve the needs of our customers across the greater New York and Long Island marketplaces,” Mr O’Connor added. “We are very excited to begin this new chapter in our institutions’ histories.”
Customers with accounts at both banks will have their deposits insured, separately, up to the maximum amount permitted by law for six months from the February 1, 2021.
The existing Dime and BNB Bank products are to remain separate until April 19, 2021 when a new set of products are to be launched by the newly merged entity. The merger is just one of many to be expected throughout the first quarter of 2021.
Banks are expected to be busy throughout the first half of 2021 as the second round of PPP loans will continue to take a great deal of time and effort. Banks the size of Dime Community Bank performed well in the first round of loans inspired by the Covid 19 small business crisis.