Investors Bancorp, Inc. and American Bancorp of New Jersey, Inc. have jointly entered into a definitive agreement, to acquire American Bancorp of New Jersey for $140 million in stock and cash, or $12.50 per share.

Under the arrangement, 70 percent of American Bancorp of New Jersey shares will be converted into Investors Bancorp common stock and the remaining 30 percent will be converted into cash.

The purchase price represents 11.0% premium to deposits, 14.1% premium to core deposits and 149% of tangible book value (all as of September 30, 2008).

American Bancorp of New Jersey is a community bank with $622 million in assets, $448 million in deposits and five branches in Essex and Passaic Counties.

Market analysts believe that with this deal, Investors Bancorp will gain market leading positions in the attractive Townships of Bloomfield and Cedar Grove.

According to an estimate, Post acquisition, the combined institution will have $7.6 billion in assets, $4.4 billion in deposits and 57 branches serving northern New Jersey. However, the company declined any branch consolidation is expected.

The transaction has been approved by the boards of directors of each company and is expected to close in the second calendar quarter of 2009.