RSI Bank, which has operated in Rahway since 1851, has been acquired by Columbia Bank.
Become a Patron!
Support local news – become a Patron of RahwayRising.com or make a one-time contribution via PayPal.
Under the terms of the deal announced Dec. 1, RSI will merge into Columbia Bank, pursuant to a definitive agreement. Current RSI Bank depositors will become depositors of Columbia Bank. Columbia has offered full employment to all RSI employees once the merger is completed, which is expected to close in the second quarter of 2022.
As of Sept. 30, RSI Bank had total assets of $620 million, loans of $363 million, deposits of $510 million and equity capital of $90 million. It has approximately 72 employees, according to Rachael Faillace, corporate secretary and vice president of marketing.
Fair Lawn-based Columbia Bank was founded in 1927. It has 557 full-time employees and 61 branches, with total assets of $9.2 billion as of Sept. 30, 2021 The same day it announced acquiring RSI, Columbia received regulatory approval for its June 17 merger with Freehold Bank, Monmouth County’s oldest bank, founded in 1853.
Columbia Bank trades on NASDAQ under the symbol, CLBK. It closed Dec. 1 at $18.25 per share, and spiked to $20.14 after yesterday’s announcement that it would repurchase up to 5 million shares, or 4.6% of its currently issued and outstanding common stock.
In connection with the transaction, RSI Bank is establishing and funding a new charitable foundation in the amount of $5 million prior to the effective date of the merger that will support the charitable organizations serving the communities currently served by RSI.
Columbia will add one current member of RSI’s Board of Directors to Columbia’s board following completion of the merger.
RSI Bank was incorporated on Feb. 19, 1851 as Rahway Savings Institution, and opened to the public on March 12, 1851. In addition to the main office on Irving Street, it operates three branches: in Colonia, Woodbridge, and on St. Georges Avenue near Linden.
The transaction will strengthen Columbia's footprint in Middlesex and Union Counties, according to President and CEO Thomas Kemly, "As two community-minded banks, we are proud to enhance our local impact and support new markets," he said in a press release announcing the deal.
"The merger will provide an opportunity for our customers to join a larger banking network, with expanded products and services, while employees will benefit from the opportunity to work for a rapidly growing community bank,” RSI President and CEO David Taylor said.
Become a Patron!
Support local news – become a Patron of RahwayRising.com or make a one-time contribution via PayPal.
Hopefully they continue to protect our money and not start taking and penalizing customers for everything that was the joy of being a customer for over 30 years at Rahway Savings!!
This change has already damaged the neighborhood. Their floodlights shine directly into the MetroRahway building the minute the sun sets. It’s clear they don’t care about the neighborhood they claim to serve.