1ST Constitution Bancorp To Buy Rumson-Fair Haven Bank And Trust - Quick Facts

(RTTNews) - 1ST Constitution Bancorp (FCCY) or 1ST Constitution, parent company of 1ST Constitution Bank, and Rumson-Fair Haven Bank and Trust Company (RFHB.OB) or Rumson announced today that the companies have entered into a definitive agreement and plan of merger , pursuant to which Rumson will be merged with and into 1ST Constitution Bank, with 1ST Constitution as the surviving bank holding company.

As per the terms of the Merger Agreement, shares of Rumson common stock will be exchanged in the aggregate for 60% cash and 40% 1ST Constitution common stock. Each shareholder of Rumson will elect to receive 0.7772 of a share of 1ST Constitution common stock, or $7.50 per share in cash (or a combination of stock and cash) for each common share of Rumson common stock.

Based on the closing price of 1ST Constitution common stock on August 13, 2013, the transaction is valued at approximately $24.3 million. The closing is anticipated to occur during the first quarter of 2014, subject to certain conditions, and is expected to be accretive to earnings per share of 1ST Constitution in 2014.

Rumson, with $214 million in assets, $133 million in loans, and $185 million in deposits as of June 30, 2013, has five branch banking offices in Rumson, New Jersey and the surrounding area in Monmouth County.

The combined entity is expected to have approximately $1.0 billion in assets, $532 million in loans, $900 million in deposits, and 19 branch banking offices in Central New Jersey primarily in Mercer, Middlesex, Monmouth, and Somerset Counties upon completion of the proposed merger.

The merger has been approved by the board of directors of each company, and is subject to certain conditions, including regulatory approvals and approval by Rumson's shareholders.