NEW YORK (CNNfn) - Astoria Financial Corp. is buying Long Island Bancorp Inc. in a deal valued at $1.8 billion, the New York-based banking firms said Friday.
The Lake Success, N.Y.-based Astoria Financial Corp. is the holding company for Astoria Federal Savings and Loan Association while Long Island Bancorp is the parent company of Long Island Savings Bank.
Under terms of the roundabout deal, Long Island Bancorp, headquartered in Melville, N.Y., will merge into Astoria Financial and Long Island Savings will merge into Astoria Federal.
The deal will create the sixth largest publicly traded U.S. thrift, with total assets of $16.6 billion. It will have 96 banking offices, mostly in New York City, and also mortgage operations spread across seven states.
The boards of directors have already approved the deal and the companies look for completion of the merger at the end of the third quarter of 1998. The deal now awaits shareholder and regulatory approval.
LISB stockholders will get 1.15 shares of Astoria Financial stock (ASFC) for each of their own shares (LISB). That values LISB shares at $71.04, about $7 above its Friday morning price of $64.25.