Monday, September 22, 2014 08:19pm
North Adams, MA now: 52 °   
Send news, tips, press releases and questions to info@iBerkshires.com
The Berkshires online guide to events, news and Berkshire County community information.
SIGN IN | REGISTER NOW   

Home About Archives RSS Feed
Follow iBWatercooler on Twitter
Berkshire Bank To Acquire Beacon Federal
On: 12:10PM / Friday June 01, 2012
Important
0
Interesting
0
Funny
0
Awesome
0
Infuriating
0
Ridiculous
0
PITTSFIELD, Mass. —  Berkshire Hills Bancorp, Inc. and Beacon Federal Bancorp, Inc. announced that they signed a definitive merger agreement under which Berkshire will acquire Beacon in a transaction valued at approximately $132 million. Under the agreement, Beacon's subsidiary bank, Beacon Federal, will be merged into Berkshire Bank.
 
Beacon is headquartered in East Syracuse, N.Y., and operates seven full-service offices with deposits totaling $677 million at March 31. The majority of its business is concentrated in the Syracuse market, as well as the Rome/Utica market which Berkshire entered last year with the acquisition of Rome Bancorp. When the merger is completed, Berkshire will have a total of 10 branches serving these markets, with approximately $700 million in deposits and third position in market share among regional banks. Additionally, Berkshire will add  Beacon's Chelmsford office located north of Boston, which will be Berkshire's first Eastern Massachusetts full-service branch office,  complementing the 10 residential and commercial  lending offices that Berkshire presently operates in central/eastern Massachusetts.
 
Under the terms of the merger agreement, 50 percent of the outstanding Beacon shares will be exchanged for Berkshire shares at a fixed exchange ratio of  0.92 shares for each  Beacon share, while the remaining 50 percent of Beacon shares will be exchanged for cash in the amount of $20.50 per share.
 
The transaction is valued at $20.35 per Beacon share, based on the $21.96 Berkshire closing stock 
price on May 30. This represents 111 percent of Beacon's tangible book value per share and a 
3.4 percent premium to core deposits based on financial information for the period ended March 31.
 
"We are very pleased to extend our presence in Central New York in this partnership with  Beacon," Michael P. Daly, Berkshire's president and chief executive officer, said. "Our New York expansion last year exceeded our expectations in terms of financial return, customer retention, and business development opportunities. I am confident that our Beacon partnership will also prove to be a solid success for all of our constituencies."
 
Each Beacon shareholder will have the right to elect the form of consideration, subject to proration procedures to maintain the overall 50/50 mix of stock and cash consideration.  The transaction is intended to qualify as a reorganization for federal income tax purposes, and as a result, the shares of Beacon common stock exchanged for shares of Berkshire common stock are expected to be transferred on a tax-free basis. The definitive agreement has been approved by the unanimous vote of the board of directors of both Berkshire and Beacon. Consummation of the agreement is subject to the approval of Beacon's shareholders, as well as state and federal regulatory agencies. 
 
The merger is expected to be completed in the fourth quarter of 2012. One Beacon director will be appointed to Berkshire's board of directors. Berkshire anticipates that it will divest Beacon's modest-sized Tennessee operations in conjunction with the consummation of this merger.


1 Comments
     
News Headlines
Cat Who Survived Tornado Visits Pittsfield's Berkshire Pathways
Letter: Stroudwater Report
Pittsfield Singer Seeking IndiGogo Boost to Fame
UCP Honors Volunteers, Staff at 53rd Annual Meeting
Downtown Pittsfield Construction Update, Sept. 22-26, 2014
Rockwell Museum Gets Grant to Develop Digital Experiences
Pittsfield Celebrates Fire Safety Week With Open House
Tapestry Health Moving to MCLA
'Autumn Fields' Opens Sept. 25 in Williamstown
Nuclea Biotechnologie Taps New CFO

 


Bill Schmick separates the bull from the bears in his weekly columns on investing and market wrap-ups.



Categories:
advertising (10)
agriculture (1)
arts (7)
automotive (4)
awards (16)
banking (41)
Beacon (1)
broadband (1)
business (52)
chamber (25)
closing (5)
development (23)
dining (5)
domestic animals (2)
energy (6)
entertainment (2)
federal (4)
finances (5)
food (5)
fundraiser (3)
green (2)
grocery (5)
hospitality/hotel (5)
housing (0)
insurance (3)
investment (6)
jobs (35)
labor (17)
laws (4)
Legislature (2)
manufacturing (9)
media (8)
medical (4)
networking (33)
new (22)
pricing (1)
projects (2)
promotion (6)
publishing (12)
radio (2)
real estate (8)
retail (29)
technology (13)
training (5)
transportation (1)
volunteer (1)
website (2)
wholesale (7)
workshops (6)
Archives:
September 2014 (1)
September 2013 (1)
August 2014 (1)
March 2014 (2)
January 2014 (1)
December 2013 (2)
November 2013 (3)
Tags:
Unemployment Jobs State Wmeco Adams Berkshire Living Currency Statistics North Adams Berkshire Creative Unemployment Flood Baldwin Qualprint Excelsior Great Barrington Berkshire Chamber Of Commerce Merger Crane & Co. Pine Cone Hill Pittsfield Breakfast Expansion Talkberkshires Gas Prices Store Opening Berkshire Enterprises Walmart Sabic Auction Berkshire Chamber Bj's Small Business Statistics Williamstown
Popular Entries:
Berkshire Jobless Rates Drop
Bay State Continues to Add Jobs
Excelsior Brings Greeting Card Co. To North Adams
Covanta's Pittsfield Facility Gets High Marks from OSHA
Adams Co-Op, South Adams Bank Merger Approved
White Hart Inn For Sale for $5M
New Dog Training Center Open in North Adams
Simmons Expanding Into Customized Lines
Williamstown Chamber Seeks Input on Future Role
Real Estate Panel to Tour S. County, Pittsfield Sites
Recent Entries:
Berkshire Eagle Parent Mulling Newspaper Sales
Digitial First Puts Vermont News Buildings on the Market
Berkshire Chamber, Neal Hosting Facebook for Business Workshop
Winstanley Wins Big at Annual ADDY Awards
Eggs & Issues Event Focuses on Rail Cars, Development
State Unemployement Rate Drops Slightly
New Biotech Firm Setting Up in Pittsfield
Crane Museum Opens Retail Store
License Commission Approves River Street Package Move
North Adams Big Y Celebrates Renovations


View All
UCP Annual Meeting 2014
United Cerebral Palsy of Berkshire County dedicated its...
Volleyball: St. Joe s vs...
Saint Joseph's 18 13 13 0 Wahconah 25 25 25 3
Girls Soccer: Mt Greylock vs...
The Wahconah girls soccer team earned its fifth straight...
Soccer: Hoosac Valley vs...
Hoosac, Taconic Boys Play to Scoreless Tie
Football: Wahconah vs Drury
Final at Drury, Wahconah over Drury 42-6.
Girls Soccer: Lenox vs Hoosac
Hoosac Valley posts an 8-2 win over Lenox.
Walk a Mile at 3rd Thursday
The annual Walk a Mile in Her Shoes, kicking of September's...
Barrington Stage BYP Social
Berkshire Young Professionals were at the Barrington Stage...
Soccer: Wahconah vs...
The Pittsfield boys’ soccer team had the complete package...
Soccer: Taconic vs Drury
Drury boys soccer 3-1 loss to Taconic, Wednesday afternoon....
Golf: Monument vs Mount...
Two standout rounds for Mount Greylock and one standup move...
Volleyball: Lee vs Mount...
Lee 3, Mount Greylock 0, The visiting Wildcats won 25-23,...
Soccer: Mount Greylock vs...
Eric Hirsch scored twice and set up two goals to lead the...
Josh Billings RunAground 2014
The team from Pittsfield's Allen Heights Veterinary won the...
Football: Amherst vs Williams
Football: Amherst vs Williams in a scrimmage on Saturday...
Girls Soccer: Drury vs...
Taconic girls soccer team took a 3-2 win over Drury on...
UCP Annual Meeting 2014
United Cerebral Palsy of Berkshire County dedicated its...
Volleyball: St. Joe s vs...
Saint Joseph's 18 13 13 0 Wahconah 25 25 25 3
Girls Soccer: Mt Greylock vs...
The Wahconah girls soccer team earned its fifth straight...
Soccer: Hoosac Valley vs...
Hoosac, Taconic Boys Play to Scoreless Tie
Football: Wahconah vs Drury
Final at Drury, Wahconah over Drury 42-6.
| Home | A & E | Business | Community News | Dining | Real Estate | Schools | Sports & Outdoors | Berkshires Weather | Weddings
Advertise | Recommend This Page | Help Contact Us | Privacy Policy| User Agreement
iBerkshires.com is owned and operated by: Boxcar Media 102 Main Street, North Adams, MA 01247 -- T. 413-663-3384 F.413-664-4251
© 2000 Boxcar Media LLC - All rights reserved