Friday, March 27, 2015 11:56pm
North Adams, MA now: 34 °   
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.


0 Comments
     
News Headlines
Finance Committee, Selectmen See ACRSD Proposed Budget
Former Pittsfield Councilor Pete White Seeking at-Large Seat
Williams College Admits 1,159 Students for Class of 2019
Cheshire Water Protection Bylaws Saved; Bridge Being Closed
Lenox Library Launches 20th Annual Book Donation Drive
Scholarship Deadline Approaching for Girls Inc. Awards
Applications Accepted for Lola Greene Legacy Scholarships
BFAIR Annual Meeting to Feature Self-Advocate With Down Syndrome
Williamstown Election Lines Fill Up
Adams Focuses On New Economic Development Strategies

 


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)
August 2014 (1)
Tags:
Currency Sabic Breakfast Unemployment Jobs Merger State Expansion Walmart Auction Unemployment Flood Small Business Pittsfield Berkshire Chamber Of Commerce Store Opening Berkshire Chamber Gas Prices Crane & Co. Wmeco Adams Baldwin Excelsior Williamstown Berkshire Creative Statistics Berkshire Enterprises Talkberkshires Bj's Pine Cone Hill Berkshire Living Qualprint Statistics North Adams Great Barrington
Popular Entries:
Berkshire Jobless Rates Drop
Bay State Continues to Add Jobs
Excelsior Brings Greeting Card Co. To North Adams
New Dog Training Center Open in North Adams
Covanta's Pittsfield Facility Gets High Marks from OSHA
White Hart Inn For Sale for $5M
Adams Co-Op, South Adams Bank Merger Approved
Williamstown Chamber Seeks Input on Future Role
Storey Publishing to Host Next Creative Challenge
Aladco Installs New 'Green' Washing Machine
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
Spark Event @ Sohn Gallery
Sohn Fine Art in Lenox hosts a Berkshire Creative Spark...
Hoosac Valley Does 'Grease'
The Hoosac Valley High School drama team is producing the...
North Adams Chamber @River...
The North Adams Chamber of Commerce held its monthly mixer...
Birds of Prey
Julie Anne Collier of
Berkshire Chamber Nite @ UP
The Berkshire Chamber of Commerce held its monthly...
Pitt House Series at Dottie's
The first in the Pitt House Concert Series was a sold out...
Berkshire Awards 2015
Lila Berle, Churchill Cotton and Mary Rentz were honored on...
BYP Networking at AIER
The Berkshire Young Professionals gathered at the American...
Berkshire Art Fellowship Show
The 12 Berkshire Art Association College Fellows for 2015...
Hoosac Boys Lose to Old...
The Bulldogs scored the next six points and later used a...
Hoosac Girls Drop State Final...
The Hoosac Valley girls basketball team ended its season...
Massachusetts Region I High...
Near 80 students from throughout the region met in the...
Mt. Greylock SEE Fund
Williamstown's community access television station,...
2OT, Sends Hoosac to State...
Jameson Coughlan scored on a baseline inbounds play from...
HV Win State Semi-Final
Last season, with 1 min., 30 sec. to go Bellingham was down...
Hoosac Girls to Western Mass...
On Saturday afternoon, it had a chance to hang one more...
Spark Event @ Sohn Gallery
Sohn Fine Art in Lenox hosts a Berkshire Creative Spark...
Hoosac Valley Does 'Grease'
The Hoosac Valley High School drama team is producing the...
North Adams Chamber @River...
The North Adams Chamber of Commerce held its monthly mixer...
Birds of Prey
Julie Anne Collier of
Berkshire Chamber Nite @ UP
The Berkshire Chamber of Commerce held its monthly...
| 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