For Immediate Release

May 23, 2024

Contacts:

Robert Rey, NVE Bank
rrey@nvebank.com

David Rotatori, Ion Bank
drotatori@ionbank.com

NVE Bank and Ion Bank Announce Agreement to Merge

 ENGLEWOOD, NJ and NAUGATUCK, CT – Connecticut-based Ion Financial, MHC, parent company of Ion Bank, and New Jersey-based NVE Bancorp, MHC, holding company of NVE Bank, today jointly announced that they have entered into a definitive merger agreement pursuant to which NVE Bancorp, MHC will be combined with Ion Financial, MHC and NVE Bank will be combined with Ion Bank. NVE Bank will continue to be operated as a division of Ion Bank.

Ion Financial, MHC expects the merger to be accretive to tangible capital and earnings. When finalized, the merger will give Ion Bank approximately $2.7 billion in assets and an additional ten branch locations throughout Bergen County, New Jersey, expanding Ion Bank’s reach within northern New Jersey. This anticipated merger comes after Ion Bank acquired Lincoln 1st Bank in New Jersey in July 2022. Ion Bank’s strategic goal of investing where it can best serve its customers continues with this transaction, and these new communities are part of that strategy. Ion Bank is committed to the success of the communities in which it operates. That commitment will extend to the existing NVE Bank offices and surrounding communities that NVE Bank will continue to serve as a separate division of Ion Bank. As a part of the transaction, a new charitable foundation will be established with an initial contribution of $5.0 million. The foundation will be dedicated to serving the communities served by NVE Bank.

Upon completing the transaction, each of the NVE Bank directors will be offered a position on the Ion Financial, MHC and Ion Bank Boards of Directors. In addition, Robert Rey, President and Chief Executive Officer of NVE Bank, may elect to join Ion Financial, MHC, as President and as CEO of the NVE Division, and John Spencer will join Ion Financial, MHC, as a Senior Vice President and will be named President of the NVE Division. David Rotatori, President and Chief Executive Officer of Ion Bank, will remain Chief Executive Officer of Ion Financial, MHC.

Mr. Rey, President and CEO of NVE Bank said, “NVE Bank has been serving its customers and communities in Bergen County, New Jersey, for the past 137 years. The combination with Ion Bank, another strong mutual financial institution with over 150 years of successful growth in Connecticut and New Jersey, was a great opportunity for us to continue serving our customers with a larger platform, offering more branch locations and a greater suite of products and services.”

“We are excited to add NVE Bank as a division of Ion Bank,” said Mr. Rotatori. “This merger is the latest step in our plan for strategic growth and expands our footprint to reach a larger audience in New Jersey. We feel our full offering of products and services for both businesses and consumers will enhance an already great brand.”

Luse Gorman, PC, serves as legal counsel to NVE Bancorp, MHC, and NVE Bank. Hogan Lovells US LLP serves as legal counsel to Ion Financial, MHC, and Ion Bank. The Kafafian Group serves as financial advisor to NVE Bancorp.

About NVE Bank

NVE Bank is a community mutual bank with 10 branches in Bergen County. The bank was originally founded in 1887 and continues a tradition that started 137 years ago of commitment to helping customers and volunteering in their communities. For the last 48 consecutive quarters or 12 years, leading independent bank rating firm Bauer Financial, Inc. has awarded NVE Bank with its coveted 5-Star Superior rating, indicating that NVE is one of the strongest banks in the nation, and most recently earned an even higher designation as an “Exceptional Performance Bank”.

About Ion Bank

Ion Bank, with more than $2.1 billion in assets, offers financial advisory services and retail banking to consumers as well as comprehensive commercial, corporate, and small business banking services to businesses. Ion Bank was founded in 1870 and has 20 branches in Connecticut and two in New Jersey. For more information about Ion Bank, see ionbank.com. Since its inception in 1998, the Ion Bank Foundation has invested more than $10 million into the community through grants for purposes ranging from improving social services to enhancing the arts.