Tinton Falls, N.J.-based Two River Bancorp and New York-based Country Bank Holding Co. Inc. are required to pay a fee to OceanFirst Financial Corp. if their acquisitions by the Toms River, N.J.-based bank are terminated under certain circumstances.
Country Bank Holding would pay a termination fee of about $4.0 million to OceanFirst, while Two River Bancorp would pay a fee of about $7.3 million should either acquired bank enter into a deal with another bank within 12 months after termination of their respective deals or if the deals are not closed on or before May 31, 2020, for example.
OceanFirst Chairman, President and CEO Christopher Maher said the bank expects to be below the $10 billion threshold in 2020 and it aims to cross the mark as early as the first quarter of 2021. Crossing the $10 billion threshold would mean OceanFirst will be subject to various regulations under the Dodd-Frank Act, such as the Durbin amendment which sets a cap on interchange fees.
However, company executives said the estimated impact from the Durbin amendment has been dropping due to a change in customers' transaction mix. They expect a smaller hit once the integration is complete and the bank crosses the threshold, compared to if the bank jumped over the threshold today.