Independence to Buy Staten Island Bank

Independence Community Bank, Brooklyn, N.Y., is acquiring Staten Island, N.Y.-based Staten Island Bancorp in a $1.5 billion transaction, and Lehman Brothers is acquiring most of the assets of SIB Mortgage Corp. in connection with the merger.ICB is paying $23.88 per SIB share, which will make for an exchange ratio of 0.6232 ICB shares for each SIB share, according to ICB, and may vary with changes in the market price of ICB stock. The total consideration will include $369 million in cash and approximately 29 million ICB shares. The acquisition, expected to close in the second quarter of 2004, will create a $17 billion community bank with 116 bank branches. Approximately 60% of the combined bank's $9 billion portfolio will be in commercial loans. ICB said it expects the acquisition to provide: an avenue to expand the company's presence in the New Jersey, Brooklyn, and Staten Island markets; opportunities for cost savings and revenue growth; and increased funding for multifamily and commercial loan production. Alan H. Fishman, ICB's president and chief executive officer, will be president and CEO of the combined bank. And Harry P. Doherty, chairman and CEO of SIB, will be its vice chairman.