Citizens Bank and Investors Bank announced plans to merge the two institutions by next year.
The merger was approved unanimously approved by the boards of directors of each company. The full transaction is expected to close in the first or second quarter of 2022, subject to approval by the shareholders of Investors, receipt of required regulatory approvals and other customary closing conditions.
“The acquisition of Investors, following on the heels of the acquisition of HSBC’s East Coast branches, further strengthens our formidable franchise in the northeast, together adding roughly one million customers and boosting our near and long-term growth potential,” said Bruce Van Saun, chairman and chief executive officer of Citizens. “We are confident in our ability to successfully integrate these acquisitions, and to over time deliver the same attractive offerings to customers and strong financial performance in the New York City metro region and New Jersey as we do in other major metro areas we serve.”
The acquisition of Investors Bank will further build up the Citizens Bank franchise, adding 154 branches located in the greater New York City and Philadelphia metropolitan areas and across New Jersey, while also adding to its middle-market/small business and consumer customer base. The announcement comes after Citizens’ recent acquisition of HSBC East Coast branches and national online deposits which is expected to close in the first quarter of 2022. The combined Citizens franchise will operate across some of the most attractive retail and commercial banking markets in the United States characterized by large and dense population centers, areas of high-income households and centers of robust business activity.
Key members of Investors’ management team are expected to join Citizens, ensuring business and client continuity. Upon closing of the transaction, Kevin Cummings, Investors’ Chairman and Chief Executive Officer, and Michele N. Siekerka, who are current members of the board of directors of Investors, are expected to join Citizens’ board of directors.
“Joining Citizens, with its broad capabilities, scale and commitment to excellence in customer service opens exciting opportunities for our combined company,” said Kevin Cummings, chairman and chief executive officer of Investors. “Citizens shares Investors’ deep commitment to serving customers, supporting colleagues and giving back to local communities. Our local-market expertise and personal touch will align well with Citizens’ approach and together we will drive long-term value for all our stakeholders.”