Photo by James Sanna | Banker & Tradesman Staff
According to a securities filing, the holding companies of Berkshire Bank and Brookline Bank are planning to join forces in a merger of equals.The all-stock transaction is valued at approximately $1.1 billion
According to an 8-K form filed Monday morning, the Berkshire Hills Bancorp and Brookline Bancorp. boards of directors unanimously approved the merger agreement.
Brookline Bancorp owns Brookline Bank, Providence-based Bank Rhode Island and PCSB Bank, based in the lower Hudson Valley.
As part of the transaction the existing four bank charters in the deal – Berkshire, Brookline, Bank Rhode Island and PCSB – will be consolidated into one, state-chartered, Massachusetts bank at closing. The combined company will trade on the New York Stock Exchange and will announce a new name and ticker symbol prior to closing. The combined bank will also operate under a new name to be announced prior to the merger’s closing.
Berkshire Hills Bancorp board chair David M. Brunelle will serve as the chairperson of the board of directors of each of Berkshire Bank and Brookline Bank for at least two years.
However, the C-suite of the new, combined bank will be have a large number of Brookline executives.
Brookline Bancorp CEO Paul A. Perrault will take over as the president and CEO of Berkshire and a member of the board of directors of Berkshire Bank and Brookline Bank for a term of at least two years, according to the document.
Current Brookline Co-President and Chief Financial and Strategy Officer Carl M. Carlson will take on the same post in the new bank, as will Chief Credit Officer Mark Meiklejohn, and Brookline Co-President and COO Michael McCurdy will become its chief banking officer.
Berkshire Chief Human Resources & Culture Officer Jacqueline Courtwright, COO Sean Gray and General Counsel William Gordon Prescott will retain their posts under the new bank.
“Today marks a transformational milestone in the history of two storied institutions with a strong commitment to serving their clients and communities,” current Berkshire President and CEO Nitin J. Mhatre said in a statement. “The combined organization will be in an even stronger position to deliver exceptional client experience and create greater value for shareholders.”
Combined Bank Will Rival Eastern, Rockland Size
Berkshire reported a third-quarter net income of $37.5 million and boasts $11.6 billion in assets. Brookline Bancorp announced net income and operating earnings after tax of $20.1 million in the third quarter along with $11.7 billion in assets. The combined entity will have $23.42 billion in assets and $18.43 billion in deposits according to FDIC third-quarter figures.
The combined entity would be slightly smaller than the current largest Massachusetts-based bank – Eastern Bank at $25.49 billion in assets and $21.36 billion in deposits – and Eastern’s traditional rival, Rockland Trust, but with those deposits and assets spread out over a much larger geographic footprint. If the latter’s merger plans, announced last week, are approved Rockland will have approximately $25 billion in assets and $8.7 billion in wealth assets under administration plus $20 billion in deposits.
“This transaction presents an opportunity to bring together two historic franchises in the Northeast market,” Perrault said in a statement. “By bringing together two complementary cultures and geographic footprints with shared values and client focus, we will be better positioned to serve our customers, employees, communities and shareholders.”
The filing notes that “in connection with the closing of the Proposed Transaction, Berkshire will assume Brookline’s indebted obligations.” Berkshire will be the legal acquirer of Brookline, while Brookline is expected to be treated as the accounting acquirer of Berkshire with the assets and liabilities of Berkshire being marked to market at closing.
The transaction is expected to close by the end of the second half of 2025, subject to regulatory and shareholder approvals.
The Wall Street Journal reported Saturday the two banks were in merger talks based on anonymous sources close to the deal.
