Ion Bank, Lincoln 1st Bank Complete Merger

The parent companies of Connecticut’s Ion Bank and New Jersey’s Lincoln 1st Bank announced Friday (July 1) that they have completed their previously announced merger.

Lincoln 1st Bank has been merged into Ion Bank, while Lincoln Park Bancorp, MHC will dissolve as a result of the merger, according to the joint press release.

Philip B. Vaz, former acting president and chief operating officer of Lincoln Park Bancorp, MHC, Lincoln Park Bancorp and Lincoln 1st Bank, will become the regional president for New Jersey at Ion Bank.

“We’re proud of what Lincoln 1st Bank has been able to accomplish and excited to join forces with an institution that shares the same commitment and focus that Lincoln 1st Bank had for its customers,” Vaz said in the release.

Meanwhile, David F. Scelba, a former director of Lincoln Park Bancorp, MHC, Lincoln Park Bancorp and Lincoln 1st Bank, will become a trustee of Ion Financial, MHC and a member of the board of directors of Ion Bank.

Lincoln Park Bancorp minority shareholders received $10.10 per share, according to the announcement, putting the aggregate value for minority shareholders at $7.5 million. Following the merger, the combined company has assets of $2 billion.

The holding companies of the two banks announced they had entered into a definitive merger plan in November 2021.

Regulation surrounding bank mergers may be changing in the near future, spurred by a July 2021 executive order issued by President Joe Biden that ordered federal agencies to promote competition in the wider economy.

See also: OCC’s Comptroller Orders Staff to Review Bank Merger Framework

In May, Acting Comptroller of the Currency Michael Hsu said that he had directed his team to work with the Department of Justice and other pertinent regulators to review the merger frameworks. 

“From my perspective, the frameworks for analyzing bank mergers need updating. Without enhancements, there is an increased risk of approving mergers that diminish competition, hurt communities, or present systemic risk,” Hsu said at the time.