Cape Bancorp, Inc. (NASDAQ:CBNJ) shares are up big this afternoon after the company announced a merger with Oceanfirst Financial (NASDAQ:OCFC). The two New Jersey based companies will merge in what will be valued at $15 per share of CBNJ common stock, for a total deal worth around $208 million. (Stock is currently trading at 95 cents under this amount)
Both companies’ Board of Directors have approved the merger and shareholders of Cape Bancorp, Inc. (NASDAQ:CBNJ) will receive $2.25 in cash per share plus 0.6375 shares of Oceanfirst Financial (NASDAQ:OCFC) stock (currently valued at $19.08 per share after falling 4.36% today).
The deal is expected to close this summer if everything goes as planned, and shareholders approve.
“We are excited to welcome Cape Bank customers, employees, and 22 additional locations to the OceanFirst family. This opportunity will provide additional scale that will enhance our core deposit franchise, including the significant deposit market share position in key Central and Southern New Jersey counties,” said Christopher D. Maher, President and Chief Executive Officer of Oceanfirst Financial (NASDAQ:OCFC). Mr. Maher added that, “These locations represent a complementary market extension of our New Jersey network, providing a low-cost core deposit funding base.”
Cape Bancorp (CBNJ) stock is up 13.41% or $1.66 following the news, hitting $14.05 per share. About 1.02 million shares traded hands or up 4007.44% from the average. CBNJ has risen 28.66% since June 2, 2015 and is currently uptrending. It has outperformed the S&P500 by 33.35%.
The institutional sentiment decreased to 1.2 in Q2 2015. It’s down 0.65, from 1.85 in 2015Q2. The ratio is negative, as 4 funds sold all their Cape Bancorp, Inc. shares they owned while 11 reduced their positions. 7 funds bought stakes while 11 increased their total positions. Institutions now own 9.58 million shares which is 72.44% more than the previous share count of 5.56 million in 2015Q2.
Patriot Financial Partners Gp Lp holds 4.83% of its total portfolio in Cape Bancorp, Inc., equating to 1.63 million shares. Hanlon Investment Management Inc. owns 132,249 shares representing 3.18% of their total US portfolio. Moreover, Blackthorn Investment Group Llc has 1.16% of their total portfolio invested in the company, equating to 25,000 shares. The Missouri-based Eidelman Virant Capital has a total of 0.54% of their portfolio invested in the stock. Price Michael F, a New York-based fund reported 259,200 shares owned.
Cape Bancorp, Inc. is the holding firm of Cape Bank (the Bank). The company has a market cap of $168.32 million. The Bank focuses on providing deposit and loan products to retail clients and to small and mid-sized businesses from its fourteen full service branch offices, located in Atlantic and Cape May Counties, one drive-up teller/ATM operation in Atlantic County, three market development offices (MDOs) located in Burlington, Cape May and Atlantic Counties in New Jersey, and two MDOs in Pennsylvania servicing the five county Philadelphia market located in Radnor, Delaware County and in Philadelphia. It has 16.08 P/E ratio. It attracts deposits from the general public and uses those funds to originate a variety of loans, including commercial mortgages, commercial business loans, home equity loans and lines of credit (HELOC) and construction loans.