Berkshire Hills Bancorp, the parent of Berkshire Bank, has agreed to acquire First Choice Bank in an all-stock deal worth about $111.7m.
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As per the agreed terms of the deal, First Choice Bank will merge into Berkshire Bank and its subsidiary, First Choice Loan Services will become a subsidiary of Berkshire Bank.
Following the addition of $1.1bn in acquired First Choice assets, Berkshire’s portfolio will be increased to $8.9bn.
The merger is expected to offer entry into attractive markets, and includes six branches near Princeton, New Jersey and two in the greater Philadelphia, Pennsylvania area.
The deal has already secured the approval of boards of directors of both companies. It is expected to be completed in the fourth quarter of 2016, subject to shareholders’ and regulatory approvals.
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By GlobalDataFirst Choice Bank chairman of the board Martin Tuchman and board member Munish Sood will serve as advisors to Berkshire and liaisons to the local community post deal completion.
Berkshire CEO Michael Daly said: "This partnership builds on Berkshire’s commitment to create a strong regional platform for serving our customers, while diversifying our revenue streams, improving profitability and increasing shareholder value.
"The First Choice franchise builds on markets where we presently manage commercial relationships, and adds a well-positioned deposit base, a best in class home lending operation and enthusiastic new teams that complement our current culture.
"After integration, the transaction is expected to be accretive to Berkshire’s earnings per share, return on equity and return on assets, liquidity and capital. We have a strong track record of execution and our collective teams are positioned to complete this integration flawlessly."
