BHLB to Buy Brookline Bancorp for $1.14B, Expand Footprint

Zacks12-17

Berkshire Hills Bancorp, Inc. BHLB has agreed to acquire Brookline Bancorp, Inc. BRKL and its subsidiary, Brookline Bank. The all-stock transaction has been valued at roughly $1.14 billion.The deal is...

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The all-stock transaction has been valued at roughly $1.14 billion.The deal is...</p>\n\n<a href=\"https://finance.yahoo.com/news/bhlb-buy-brookline-bancorp-1-153600802.html\">Source Link</a>\n\n</div>\n","source":"yahoofinance","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>BHLB to Buy Brookline Bancorp for $1.14B, Expand Footprint</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nBHLB to Buy Brookline Bancorp for $1.14B, Expand Footprint\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-12-17 23:36 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/bhlb-buy-brookline-bancorp-1-153600802.html><strong>Zacks</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Berkshire Hills Bancorp, Inc. BHLB has agreed to acquire Brookline Bancorp, Inc. BRKL and its subsidiary, Brookline Bank. The all-stock transaction has been valued at roughly $1.14 billion.The deal is...</p>\n\n<a href=\"https://finance.yahoo.com/news/bhlb-buy-brookline-bancorp-1-153600802.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"IE00BWXC8680.SGD","symbol_name":"PINEBRIDGE US LARGE CAP RESEARCH ENHANCED \"A5\" (SGD) ACC","start_time":0,"source_url":"https://finance.yahoo.com/news/bhlb-buy-brookline-bancorp-1-153600802.html","article_id":"2492993424","we_media_id":null,"thumbnails":["https://s.yimg.com/uu/api/res/1.2/42kMW1i3N6v1sowRyTLK6A--~B/aD00MTM7dz02MjA7YXBwaWQ9eXRhY2h5b24-/https://media.zenfs.com/en/zacks.com/7e1f53f40e9d063d53fbcad815196a71"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2492993424","pubTimestamp":1734449760,"columns":[],"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"Berkshire Hills Bancorp, Inc. BHLB has agreed to acquire Brookline Bancorp, Inc. BRKL and its subsidiary, Brookline Bank. The all-stock transaction has been valued at roughly $1.14 billion.The deal is expected to be closed by Sept. 30, 2025, subject to requisite regulatory approvals and shareholders’ approvals of both entities. The merger agreement has been approved by the board of directors of both entities.Upon closure, Brookline will be merged into Berkshire and Brookline Bank will be merged into Berkshire Bank, a subsidiary of Berkshire.Before closing, the combined company will announce a new name and ticker symbol to be traded on the New York Stock Exchange. Further, the combined subsidiaries will function under a new name which will also be announced prior to the closure of the transaction.David Brunelle, chairperson of Berkshire, stated, “This highly compelling combination is a true merger of equals that will create a preeminent northeast financial institution. Scale and efficie","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"IE00BWXC8680.SGD":"PINEBRIDGE US LARGE CAP RESEARCH ENHANCED \"A5\" (SGD) ACC","LU1363072403.SGD":"Fidelity Global Financial Services A-ACC-SGD","LU0683600562.USD":"AB SELECT US EQUITY \"A\" (USD) ACC","IE00BK4W5M84.HKD":"HSBC GLOBAL FUNDS ICAV US EQUITY INDEX \"HC\" (HKD) ACC","LU0130102774.USD":"Natixis Harris Associates US Equity RA USD","SEIC":"SEI Investments Company","BRKL":"布鲁克赖恩银行","LU0648001328.SGD":"Natixis Harris Associates US Equity RA SGD","IE00B1BXHZ80.USD":"Legg Mason ClearBridge - US Appreciation A Acc USD","IE000M9KFDE8.USD":"NEUBERGER BERMAN US LARGE CAP VALUE \"A\" (USD) ACC","BK4588":"碎股","BK4550":"红杉资本持仓","LU0787776722.HKD":"AB SELECT US EQUITY PORTFOLIO \"A\" (HKD) ACC","LU0971096721.USD":"富达环球金融服务 A","LU1074936037.SGD":"JPMorgan Funds - US Value A (acc) SGD","LU1914381329.SGD":"Allianz Best Styles Global Equity Cl ET Acc H2-SGD","LU0149725797.USD":"汇丰美国股市经济规模基金","LU0251131958.USD":"FIDELITY AMERICA \"A\" (USD) ACC","LU0154236417.USD":"BGF US FLEXIBLE EQUITY \"A2\" ACC","LU0256863811.USD":"ALLIANZ US EQUITY \"A\" INC","LU0742534661.SGD":"Fidelity America A-SGD (hedged)","LU1571399168.USD":"ALLSPRING GLOBAL LONG/SHORT EQUITY \"IP\" (USD) ACC","LU0980610538.SGD":"Natixis Harris Associates US Equity RA SGD-H","BK4581":"高盛持仓","BK4135":"资产管理与托管银行","IE00B775SV38.USD":"NEUBERGER BERMAN US MULTICAP OPPORTUNITIES \"A\" (USD) ACC","IE00B3S45H60.SGD":"Neuberger Berman US Multicap Opportunities A Acc SGD-H","LU0234570918.USD":"高盛全球核心股票组合Acc Close","LU0251142724.SGD":"Fidelity America A-SGD","LU0417517546.SGD":"Allianz US Equity Cl AT Acc SGD","LU0170899867.USD":"EASTSPRING INVESTMENTS WORLD VALUE EQUITY  \"A\" (USD) ACC","LU0053666078.USD":"摩根大通基金-美国股票A（离岸）美元","INDB":"美国独立银行","BRK.A":"伯克希尔","BK4176":"多领域控股","IE00B1XK9C88.USD":"PINEBRIDGE US LARGE CAP RESEARCH ENHANCED \"A\" (USD) ACC","IE0034235303.USD":"PINEBRIDGE US RESEARCH ENHANCED CORE EQUITY \"A\" (USD) ACC","LU0640476718.USD":"THREADNEEDLE (LUX) US CONTRARIAN CORE EQ \"AU\" (USD) ACC","BHLB":"Berkshire Hills Bancorp","LU1366333091.USD":"FIDELITY GLOBAL FOCUS \"A\" (USD) ACC","LU1280957306.USD":"THREADNEEDLE (LUX) US CONTRARIAN CORE EQUITIES \"AUP\" (USD) INC","IE00BKDWB100.SGD":"PINEBRIDGE US LARGE CAP RESEARCH ENHANCED \"A5H\" (SGDHDG) ACC","LU0234572021.USD":"高盛美国核心股票组合Acc","BK4585":"ETF&股票定投概念","BK4534":"瑞士信贷持仓","LU0157215616.USD":"FIDELITY GLOBAL FOCUS \"A\" INC","BK4533":"AQR资本管理(全球第二大对冲基金)","IE00BK4W5L77.USD":"HSBC GLOBAL FUNDS ICAV US EQUITY INDEX \"HC\" (USD) ACC","BK4211":"区域性银行"},"translate_title":"BHLB将以$1.14 B收购Brookline Bancorp，扩大业务范围","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"SEIC":1,"BHLB":1,"INDB":1,"BRKL":1,"BRK.A":0.9},"content_text":"Berkshire Hills Bancorp, Inc. BHLB has agreed to acquire Brookline Bancorp, Inc. BRKL and its subsidiary, Brookline Bank. The all-stock transaction has been valued at roughly $1.14 billion.The deal is expected to be closed by Sept. 30, 2025, subject to requisite regulatory approvals and shareholders’ approvals of both entities. The merger agreement has been approved by the board of directors of both entities.Upon closure, Brookline will be merged into Berkshire and Brookline Bank will be merged into Berkshire Bank, a subsidiary of Berkshire. Before closing, the combined company will announce a new name and ticker symbol to be traded on the New York Stock Exchange. Further, the combined subsidiaries will function under a new name which will also be announced prior to the closure of the transaction.David Brunelle, chairperson of Berkshire, stated, “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.”\nDetails of the Berkshire-Brookline Transaction\nPer the agreement, Berkshire will pay 0.42 shares of its common stock for each share of Brookline. In conjunction with the deal, Berkshire will issue $100 million of its common stock at $29 per share. The capital raise is anticipated to be completed on Dec. 19, 2024. The proceeds will likely be used to support the pro forma bank’s balance sheet and regulatory capital ratios.Boston, MA-based Brookline Bancorp operates 65 branches across Massachusetts, Rhode Island, and New York. As of Sept. 30, 2024, BRKL had roughly $11.7 billion in assets, $9.8 billion in total loans and $8.7 billion in deposits.The combined entity is anticipated to have roughly $24 billion in total assets, $19 billion in total loans and $18.3 billion in total deposits. Also, the combined bank will be segregated into six regions, led by three regional presidents from Berkshire and Brookline each. Further, Berkshire’s existing four bank charters will be consolidated into a single bank, a Massachusetts state-chartered bank, upon closing. Brookline Bank will represent the consolidated bank charter. Upon the completion of the deal, the board will comprise eight directors each from Berkshire and Brookline. Further, Berkshire expects to increase its dividend post-closure to $1.29 per share annually.\nRationale Behind the BHLB-BRKL Deal\nThis transaction is likely to improve BHLB’s deposit mix through high-quality core deposits and complementary footprint expansion, with the company having a top 10 deposit market share in 14 out of 19 Metropolitan Statistical Areas. Also, it will likely unlock meaningful growth opportunities via business diversification and enhanced competitive positioning alongside offering better dynamics to manage income-producing commercial real estate loan concentration.Berkshire will likely benefit from expected cost-savings of 12.6% of combined non-interest expense, 75% of which will be phased in 2025 and the rest will be realized thereafter. The company is expected to incur one-time pre-tax merger expenses of $93 million.The deal is anticipated to be roughly 14% and 40% accretive to BHLB’s 2025 and 2026 earnings per share, respectively, assuming the execution of cost savings. Further, the company expects a common equity tier 1 capital of 10.5% by 2026 year-end and a 25% internal rate of return.Also, tangible book value is expected to dilute by 16.7%, with an estimated earn-back period of approximately 2.9 years. Further, Berkshire anticipates roughly 16.5% return on average tangible common equity, 48% efficiency ratio, and 1.28% return on average assets by 2026-end, adjusting for the phased-in cost savings.The transaction creates a premier Northeast commercial banking franchise with 148 branches and operations in distinct, lucrative markets. With minimal branch overlap, the franchise will benefit from economies of scale. Further, the regional banking model enables regional presidents to act autonomously with the support and balance sheet of the larger institution.\nOur Take on BHLB’s Inorganic Expansion Effort\nThe move aligns with Berkshire’s long-term inorganic growth strategy, indicating its emphasis on strategic buyouts to expand its presence and capitalize on revenue and cost benefits.Year to date, shares of Berkshire and Brookline have risen 20.3% and 14.5%, respectively. The industry has risen 20.1% in the same time frame.\nImage Source: Zacks Investment Research\nCurrently, BHLB carries a Zacks Rank #2 (Buy), while BRKL sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.\nSimilar Steps by Other Finance Firms\nEarlier this month, SEI Investments Co. SEIC acquired a Boston-based, tax-smart technology provider — LifeYield. This acquisition will enable SEIC to provide cost-effective, automated, real-time unified managed household capabilities in a fully bundled overlay solution. This approach will allow advisors to look across all account registrations and optimize clients' after-tax returns.While the acquisition is not deemed significant in terms of asset size or material impacts on the company operations or financial performance, it builds upon a collaboration established in 2022 between SEIC and LifeYield.Similarly, Independent Bank Corp. INDB agreed to acquire Enterprise Bancorp, Inc. The deal is valued at roughly $562 million and will be paid through roughly 7.5 million shares and $27.1 million in cash.This acquisition will deepen INDB’s footprint in demographically lucrative markets, including northern Massachusetts and southern New Hampshire. It will also meaningfully expand wealth assets under administration in adjacent markets.\nWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report\nBerkshire Hills Bancorp, Inc. (BHLB) : Free Stock Analysis Report\nSEI Investments Company (SEIC) : Free Stock Analysis Report\nIndependent Bank Corp. (INDB) : Free Stock Analysis Report\nBrookline Bancorp, Inc. (BRKL) : Free Stock Analysis Report\nTo read this article on Zacks.com click here.\nZacks Investment Research","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"1","news_tag":"corporation","news_rank":0,"symbols":[],"gpt_button":0},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.3","shortVersion":"4.29.3","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2492993424"}