Investors Bancorp enters agreement with regulators
Short Hills-based Investors Bancorp Inc., New Jersey’s largest state-chartered bank, has entered into an informal agreement with state and federal banking regulators to strengthen its anti-money- laundering practices, the company said in a filing with a securities regulator. The accord might complicate Investors Bancorp’s planned purchase of The Bank of Princeton.
The holding company for Investors Bank, which has $21.7 billion in assets, said in the filing made Friday with the Securities and Exchange Commission that the agreement with the Federal Deposit Insurance Corp. and the state Department of Banking and Insurance calls for the bank “to review certain transactions and accounts for Bank Secrecy Act and Anti-Money-Laundering compliance,” and that the regulatory action may affect its ability to complete its previously announced deal to buy The Bank of Princeton.
Investors Bancorp announced on May 4 that it agreed to buy The Bank of Princeton for $154 million, 60 percent in stock and 40 percent in cash. The Bank of Princeton, a privately held lender founded in 2007, has $1 billion in assets and 10 branches that would be added to the Short Hills bank company’s network in the Princeton area.
At the time the deal was announced, it was expected to close in the fourth quarter, pending regulatory approval.
Investors’ application to purchase the community bank is still being processed by the state regulator, and the company “believes that it will be able to demonstrate substantial compliance with the terms of the agreement” and receive regulatory approvals, but “no assurances can be provided.”
Neither the FDIC nor the state Department of Banking and Insurance would comment on the matter.
The bank said in the filing that it has agreed to implement a system of internal controls to ensure full compliance with the laws, conduct a comprehensive validation of its automated compliance system and start training programs. The bank also agreed to form a compliance committee.
Investors Bancorp, with a market cap of $3.55 billion, has 143 retail branches, including five in North Jersey.
Shares of Investors Bancorp rose 2 cents to $11.31 in Monday trading on the Nasdaq Stock Market.