Two storied Boston banks whose roots date to the 1800s said they would combine forces and create a top 10 financial institution by market share in New England’s largest metropolitan area.
The $11. 6 billion-asset
“This highly compelling combination is a true merger of equals that will create a preeminent Northeast financial institution. Scale and efficiency combined with our shared culture of true community banking is a powerful driver of value for all of our stakeholders,” Berkshire Chairman David Brunelle said in a press release announcing the deal early Monday.
In connection with the deal, expected to close by late 2025, Berkshire plans to issue $100 million of its common stock at $29.00 per share. Proceeds from the capital raise were expected to support the pro forma bank’s balance sheet and regulatory capital ratios.
Berkshire shareholders would own approximately 51% of the company, while Brookline’s stockholders would own 45%, and investors in new shares would own the remaining outstanding shares.
The merged company would trade on the New York Stock Exchange, with a new holding company name and ticker symbol to be announced prior to closing. The combined bank would also operate under a new name.
Berkshire’s shares were down about 2% to around $29.50 early Monday, while Brookline’s stock was near even at $12.55.
“This transaction presents an opportunity to bring together two historic franchises in the Northeast market,” Brookline Chairman and CEO Paul Perrault said in the release. “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.”
Perrault would become president and CEO of the combined bank.
The companies did not note in the release what role, if any, Berkshire President and
Berkshire hired Mhatre, a former executive at Webster Bank, in 2021. He was Berkshire’s
Under Mhatre, however, the bank has shored up credit quality issues, curbed costs via branch sales, and returned to consistent profitability. Mhatre has emphasized investments in technology.
Berkshire reported third-quarter net income of $ 37.5 million, up from $19.5 million a year earlier.
Asked on the company’s earnings call if he was open to an acquisition, Mhatre said his team would “continue to improve our performance, improve our currency, and if something comes along, we will take a look at that.”
Brookline reported third-quarter net income of $20.1 million, which compared with $22.7 million a year earlier. The bank has consistently posted annual profits throughout this decade.
The Berkshire-Brookline announcement marked the sixth-largest deal so far this year by value, according to S&P Global Market Intelligence data. It also was the second substantial M&A transaction in the Boston area this month.
Rockland, Massachusetts-based Independent Bank Corp. said it
