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In New Jersey, MB Mutual Holding to acquire Metuchen

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In New Jersey, MB Mutual Holding to acquire Metuchen

Manasquan, N.J.-based MB Mutual Holding Co., holding company of MB Bancorp Inc. and Manasquan Bank, entered into a definitive agreement with Metuchen, N.J.-based Metuchen MHC, holding company of Metuchen Bancorp Inc. and Metuchen Savings Bank, according to which the two parent mutual holding companies and parent holding companies will merge.

Metuchen will merge into MB Mutual and Metuchen Bancorp will merge into MB Bancorp. Manasquan Bank and Metuchen Savings Bank will continue to exist as separate, wholly owned subsidiaries of MB Bancorp until the two subsidiaries agree to merge within a two-year time period, in which case Manasquan Bank will be the surviving entity.

The transaction, which is subject to regulatory approval, is anticipated to close during the fourth quarter.

SNL valuations for bank and thrift targets in the Mid-Atlantic region between May 24, 2017, and May 24, 2018, averaged 140.90% of book and 138.99% of tangible book and had a median of 36.42x last-12-months earnings, on an aggregate basis.

The combined bank will operate two branches in Middlesex County, N.J., ranked No. 18 with a 0.65% share of approximately $35.38 billion in total market deposits. The bank will operate seven branches in Monmouth County, N.J., ranked No. 10 with a 3.02% share of approximately $23.53 billion in total market deposits, and will operate three branches in Ocean County, N.J., ranked No. 10 with a 2.11% share of approximately $15.51 billion in total market deposits.

James Vaccaro will continue to serve as chairman, president and CEO and James Manser as lead director of MB Mutual, MB Bancorp and Manasquan Bank. Katherine Liseno will remain president of Metuchen Savings Bank. The board of Metuchen Savings Bank will consist of the existing board members and three additional individuals which will be chosen by Manasquan Bank. Victor Richel will be appointed as vice chairman of MB Mutual and director of both MB Bancorp and Manasquan Bank. Additionally, two other existing Metuchen Savings Bank directors will be added to the boards of MB Mutual, MB Bancorp and Manasquan Bank.

As of March 31, Manasquan Bank had $1.26 billion in assets, while Metuchen Savings Bank's total assets were $260 million. Following merger completion, MB Mutual will have over $1.5 billion in total assets and around $160 million in total equity, with its branch network expanding into Middlesex County.

Sandler O'Neill & Partners LP and Jones Walker LLP served as financial adviser and legal adviser, respectively, to Manasquan. The Kafafian Group and McCarter & English LLP served as financial adviser and legal adviser, respectively, to Metuchen.

SNL is owned by S&P Global Market Intelligence.